Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact of fiscal drag on the tax revenues for the year 2022–23.

The Treasury does not produce fiscal forecasts. The independent Office for Budget Responsibility (OBR) are the Government’s official forecaster. Inflation has a range of impacts on the public finances and previous OBR forecasts have shown how inflation can also increase spending on welfare and debt interest, as well as tax revenues. Borrowing in the financial year-to-June 2022 is currently £3.7 billion more than the £51.8 billion forecast by the OBR in March 2022. The OBR will produce an updated forecast alongside the next Budget, which will reflect the impacts of an updated inflation outlook on both revenues and spending.