Thursday 14 Dec 2023

Treasury responds to Bank of England interest rates decision

The Treasury's response to Bank of England interest rates decision is below.

A HM Treasury Spokesperson said:

“We have turned a corner in our fight against inflation and real wages are rising, but we must keep driving inflation out of the economy to reach our 2% target.

“By cutting taxes for hard working people and businesses, and helping people into work, we are forecast to deliver the largest boost to potential GDP on record.”

Contact Information

HMT Press Office
020 7270 5238
pressoffice@hmtreasury.gov.uk

Notes to editors

Further information:

The combined impact of the Autumn and Spring policy packages is a permanent 0.5% increase in the level of potential output by the end of the OBR’s forecast – equivalent to the aerospace sector.
And the OBR confirms that our Autumn Statement package does not jeopardise our progress in controlling inflation while simultaneously growing the economy. In the final year of the forecast our measures reduce the overall tax burden by 0.7% of GDP and get 78,000 extra people into work.
To reward work, we have cut National Insurance for 29 million people worth £9 billion per year, worth £450 for the average employee on £35,400 and £350 for the average self-employed person on £28,200.
Full expensing is the biggest business tax cut in modern British history worth over £50 billion over the next five years – helping companies to invest for less.
Since 2010, the UK has grown faster than France, Japan and Italy, and Germany.
Recent figures have shown that by 2021 the UK had recovered faster from the pandemic than France, Germany, and Japan.