7 months ago
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Jeremy Hunt is announcing his financial update – here are the main points, with political analysis
Jeremy Hunt says the UK economy has dealt with the financial crisis, the pandemic and energy crisis caused by war in Europe. He acknowledges that interest rates “remain high as we bring down inflation”, but adds: “We can now help families not just with cost of living support but with permanent cuts in taxation.” He calls it a “budget for long term growth”.
Inflation is expected to fall below the government’s 2% target in “just a few months’ time”, Hunt says, down from 4% in January. “Nearly a whole year earlier than forecast in the autumn statement,” he adds.
The Bank of England’s long-term target is to keep inflation at a “low and stable” 2%.
The figure is down sharply from the 11.1% when Hunt and Rishi Sunak took office in 2022, as inflation in food and energy prices have eased.
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