This week new figures show the Conservative Government has met its target to halve inflation by the end of the year – with current figures their lowest in two years.
This news was welcomed by Dr Neil Hudson MP who praised Rishi Sunak’s decisive leadership for giving families the relief they need this winter.
New figures this morning show thanks to action the Conservative Government has taken, such as holding down energy bills and taking responsible decisions with public finances, inflation has fallen from its peak of 10.7% in November 2022 to 4.6% in October.
Dr Neil Hudson MP said:
Having spent the past two years grappling with the pandemic and soaring energy costs due to the War in Ukraine; we are now turning the tide on inflation and restoring financial stability to millions across the nation.
“The Conservative party is categorically the party of sound fiscal policy and I look forward to going further to ease the cost of living burden on families and help communities thrive.”
Key Government mechanisms that have been effective in halving inflation include:
- Controlling borrowing and spending when inflation was at its peak that would further fuel inflation further. This included tough but productive decisions not to fund above-inflation public sector pay settlements.
- Addressing the UK’s tight labour market by ensuring employment remains high through a package of reforms such as uncapping pensions and expanding childcare.
- Holding down energy prices – one of the main drivers of inflation – through the Energy Price Guarantee that held down inflation by 2.6 percentage points. At the same time utilising the Energy Bill Relief Scheme and Energy Price Cap to lower heading inflation further.
- Delivering tax cuts in the Spring Budget to make day-to-day costs less expensive for families. This included alcohol duty and fuel duty freezes which reduced CPI inflation by nearly 0.75 percentage points this year, according to the Office for Budget Responsibility.