The Chancellor has responded to today's ONS October inflation
statistics.
Chancellor of the Exchequer, said:
“The aftershock of Covid and Putin’s invasion of Ukraine is
driving up inflation in the UK and around the world. This
insidious tax is eating into pay cheques, household budgets and
savings, while thwarting any chance of long-term economic
growth.
“It is our duty to help the Bank of England in their mission to
return inflation to target by acting responsibly with the
nation’s finances. That requires some tough but necessary
decisions on tax and spending to help balance the books.
“We cannot have long-term, sustainable growth with high
inflation. Tomorrow I will set out a plan to get debt falling,
deliver stability, and drive down inflation while protecting the
most vulnerable.”
Notes to editors
- The UK is not alone in facing the challenge of high inflation
– with inflation at a record high of 10.7% across the Euro area,
11.6% in Germany and 12.8% in Italy.
- Slow growth is also proving a global challenge, with the
International Monetary Fund forecasting that a third of the world
economy will experience a recession this year or next.
- Energy is a central driver pushing up inflation. The war and
Putin’s weaponisation of gas has triggered an eightfold increase
in global energy prices. UK spend on energy is expected to
increase from £40bn (2% of GDP) to £190bn (8% of GDP) –
equivalent to money for an entire second NHS.
- The government acted decisively to protect households and
businesses from significant rises in their energy bills this
winter, with the Energy Price Guarantee holding down peak
inflation.
- The Chancellor is continuing to work closely alongside the
Bank of England as it takes action to return inflation to the 2%
target.
- Over eight million of the most vulnerable households across
the UK are eligible for at least £1,200 of additional
cost-of-living support this year. More information on government
support for the cost of living can be found at https://helpforhouseholds.campaign.gov.uk/
