Chancellor responds to November GDP statistics

November GDP statistics

Chancellor of the Exchequer, Jeremy Hunt, said:

“We have a clear plan to halve inflation this year - an insidious hidden tax which has led to hikes in interest rates and mortgage costs, holding back growth here and around the world.

“To support families through this tough patch, we will provide an average of £3,500 support for every household over this year and next - but the most important help we can give is to stick to the plan to halve inflation this year so we get the economy growing again.”

Additional information

• The IMF have predicted that a third of the world economy will be in recession this year.
• The OBR said that the support the government is providing will reduce the depth of a recession.
• Monetary policy is the responsibility of the independent Bank of England. The government remains fully committed to the Bank’s independence, and the inflation target of 2%.
• In addition to the Energy Price Guarantee this winter, which is saving the average household £900 on energy bills, the government provided £1200 worth of support to the most vulnerable households for 2022-23: 
• £650 in cost of living payments;
• £400 through the Energy Bill Support Scheme;
• £150 Council Tax rebate;
• Additional support for pensioners and those claiming disability benefits. 
• The government has announced further support on the cost of living in 2023-24, targeted at those most in need: 
• UK households on means-tested benefits will receive a further £900 Cost of Living Payment;
• Pensioner households across the UK will receive an additional £300 Cost of Living payment;
• People across the UK on non-means-tested disability benefits will receive a further £150 Disability Cost of Living payment, to help with the additional costs they face. 
• We have extended the Household Support Fund for another year in England, with £1 billion of extra funding (including Barnett funding for the devolved administrations). 
• The government has introduced changes to the Energy Price Guarantee (EPG), building on the measures already announced which provided much needed support to domestic and non-domestic users. The action taken on Energy support at the Autumn Statement will reduce the fiscal impact of the package whilst saving the average UK household £500 in 2023-24 from a £3000 Energy Price Guarantee.