Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to monitor and mitigate the impact of potential recessionary pressures on household finances and consumer confidence.

According to the latest data from the Office for National Statistics, economic output contracted in Q3 and Q4 of 2023. Consumer confidence has since strengthened, and in January 2024 it reached its highest level since January 2022.

The OBR has forecast growth in each year of its November 2023 forecast, and confirmed that the combined impact of the Autumn Statement and Spring budget policies provides a permanent 0.5% increase in the level of potential output by the end of the forecast.

Since 2022, the government has demonstrated its commitment to supporting the most vulnerable by providing one of the largest support packages in Europe. Support for households to help with the cost of living is worth £104 billion over 2022-23 to 2024-25, or £3,700 per household on average.

The government continues to monitor developments in the economy and consider the implications for its policies.