Question to the HM Treasury:

To ask His Majesty's Government what measures they are taking to curb inflation and assist consumers.

The independent Monetary Policy Committee of the Bank of England has primary responsibility for maintaining price stability and returning inflation sustainably to the 2% target. The Government primarily supports the Bank to control inflation through fiscal discipline, controlling borrowing and reducing long term pressures on our public finances. Last year, borrowing fell by 1ppt to its lowest level for six years at 4.2% GDP.

We know that people across the country are struggling with the cost of living and are worried about events in the Middle East and what that means for consumer prices in the UK. In March, the Government announced a £50 million support package for families struggling with high heating oil costs as a result of the conflict – with £17 million dedicated to consumers in Northern Ireland specifically. The Government has been working with the Northern Ireland Executive to ensure that protections are fit for purpose for Northern Irish households, who are particularly reliant on heating oil.

Since July, the Government has taken action to reduce energy bills by removing VAT from household electricity from October 1. This will take around £45 off the yearly Ofgem price cap in October, benefitting millions of households this winter. To ensure that households in Northern Ireland (NI) receive the same support as quickly as the rest of the UK, the NI Executive will receive comparable funding to enable it to support NI Households with the cost of living. The VAT cut on domestic electricity comes on top of the £150 removed from bills at the last Budget, when the OBR estimated that Government policy at Budget 2025 would bring down inflation by 0.4ppt in 2026-27. The 5p cut and freeze to fuel duty has also been extended to the end of the year.

The Government is monitoring the situation in the Middle East carefully. We are committed to helping people across the UK and providing breathing space with everyday costs.