Chancellor responds to February 2024 inflation statistics + Labour reaction

The Chancellor's response to ONS inflation statistics for February 2024 is below:

Chancellor of the Exchequer, Jeremy Hunt said: 

“The plan is working. Inflation has not just fallen decisively but is forecast to hit the 2% target within months. This sets the scene for better economic conditions which could allow further progress on our ambition to boost growth and make work pay by bringing down national insurance as we work towards abolishing the double tax on work - but only if we can do so without increasing borrowing or cutting funding for public services.”

Notes to editors

• We are tackling inflation by:  
• Remaining steadfast in our support for the independent Monetary Policy Committee of the Bank of England as it takes action to return inflation sustainably to the 2% target.  
• Keeping borrowing under control, with the forecast for total borrowing at Spring Budget £0.3 billion lower than at Autumn Statement 2023. 
• Boosting labour supply and introducing ambitious supply-side measures to support non-inflationary growth. Policy announced over the past three fiscal events is expected to increase the size of the economy by 0.7% by 2028-29, by increasing total hours worked by the equivalent of more than 300,000 full-time workers, and boosting business investment by £14 billion.
• The OBR has said that measures in the Spring Budget will reduce CPI inflation by 0.2% in 2024-25. 
• Food inflation is slowing. The latest ONS statistics show food inflation has slowed to [5.0%], core inflation has fallen to [4.5%]. 

Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the latest inflation figures said:

“After fourteen years of chaos and uncertainty under the Conservatives working people are worse off. Prices are still high, the tax burden is the highest it has been in seventy years and mortgage payments are going up. 

“Now Rishi Sunak is putting forward a reckless £46 billion unfunded tax plan to abolish National Insurance that would risk crashing the economy and re-running the disastrous Liz Truss experiment.

“Britain cannot afford another five years of this failed Conservative government. It’s time for change and it’s time for Rishi Sunak to set the date for the election.”