Commons Sense

House of Commons · Ministers' Questions

Inflation

Tuesday 28 June 2022 · 7 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • UK faces global inflationary pressures similar to other economies, with eurozone and US inflation rates at over 8% and near 9% respectively.
  • Steps to combat inflation include monetary policy, fiscal responsibility, and supply-side reforms to protect people and prevent long-term inflation.
  • Response highlights the impact of the UK's tight labour market and low unemployment on inflation, along with smaller technical factors like price cap timing.

Topics (select to filter)

Questions & Answers

Q1 Clive Efford Lab Eltham and Chislehurst
Economy
Context

The question addresses the global inflationary pressures affecting the UK, with other G7 countries experiencing higher levels of inflation.

Question

What recent assessment has been made regarding the effects of rising inflation trends on the UK economy?

Answer from Rishi Sunak

We are not immune to global inflationary shocks, with eurozone inflation at over 8% and US inflation near 9%. The UK has strong tools to combat inflation including monetary policy, fiscal responsibility, and supply-side reforms.

Partly answered

Not addressed: The answer did not address any specific commitment or action being taken by the government in response to high inflation levels.

How: Hedging Language

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Mark Harper Con
Economy
Context

Inflation disproportionately affects the poorest in society, and there is concern about future inflation expectations.

Question

What steps will be taken to ensure that not only are people protected today from high inflation but also to prevent long-term locking in of high inflation which would hurt the poorest?

Answer from Rishi Sunak

The regressive nature of inflation is acknowledged, with recent announcements targeted at those on lowest incomes. The Bank of England will act forcefully to restrain inflation expectations quickly for everyone's benefit.

Partly answered

Not addressed: While the answer notes steps being taken and acknowledges concerns about future inflation, it does not specify any new commitments or actions beyond what has already been announced.

How: Hedging Language

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Pat McFadden Lab Wolverhampton South East
Economy
Context

The UK has the highest inflation rate in the G7, while its economic growth forecast is lower than all but one country in the G20.

Question

Why does the Chancellor think that despite similar global pressures, the UK's inflation rates are higher and economic growth forecasts worse compared to other nations?

Answer from Rishi Sunak

UK faces energy shocks like Europe but also tight labour market as in US. Low unemployment is celebrated, contributing to inflation. Smaller technical factors such as price cap timing and degree of upstream/downstream interventions affect inflation here. On growth performance, the UK was second highest in G7 post-pandemic according to OECD data.

Partly answered

Not addressed: The answer provides reasons but does not address what new measures or policies are being planned or implemented specifically for these issues.

How: Hedging Language

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q4 Pat McFadden Lab Wolverhampton South East
Economy Brexit
Context

The UK's high inflation is linked to weakened currency value, increased import prices, and ongoing trade issues from the Brexit deal.

Question

Does he accept that weak pound and continuing trade frictions post-Brexit contribute significantly to our constituents' inflation? Are there plans to address this situation?

Answer from Rishi Sunak

Celebrates people being employed despite figures showing challenges. Refutes Labour's Brexit stance, highlighting growing faction within Labour wanting to rejoin single market without specifics on addressing current issues.

Not addressed: The response diverts from discussing concrete measures or plans related to inflation and trade frictions, instead focusing on a political argument about Brexit.

How: Changing Subject

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q5 Alison Thewliss SNP
Economy Scotland
Context

The Scottish Government faces over a 5% real-terms funding cut despite increasing public spending, with rising inflation impacting Scotland's recovery and public services.

Question

Given the significant rise in inflation since the last Budget, will the Chancellor increase funding to devolved Governments like Scotland to support their recovery from the pandemic and mitigate service pressures?

Answer from Rishi Sunak

Challenges the Scottish Government's austerity measures despite UK-wide public spending increases. Points out that health budgets are growing faster in England than Scotland and highlights welfare budget differences as reasons.

Not addressed: Instead of addressing the funding request, the answer focuses on critiquing decisions made by Scottish Government.

How: Changing Subject

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q6 Alison Thewliss SNP
Economy Scotland Local Government
Context

The Scottish Parliament operates on a fixed budget without control over certain levers, unlike the UK government. Scotland has implemented free bus travel for under-22s but is constrained by real-term cuts to the block grant.

Question

We do not have the levers that he has to increase budgets and operate within a balanced budget every year. Ireland cut public transport fares to ease commuter burdens, while these have risen under this administration. With fixed budget limits and block grant cuts, if the Chancellor won't provide more money to Scotland, will he give us full powers so we can do more?

Answer from Rishi Sunak

We all have fixed budgets and record Barnett settlements for Scotland of £4.5 billion a year. However, Governments make different choices. On this side, we support public services; in Scotland, they impose austerity on them.

Partly answered

Not addressed: Providing full powers to the Scottish Government

How: Beneath That, However Are The Choices That Governments Make, We Choose To Support The Nhs And Public Services

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q7 Richard Bacon Con
Economy Housing
Context

The Help to Build programme was launched recently, fulfilling a previous commitment made by the Chancellor. The programme aims to make it easier for people to commission their own houses.

Question

Following the launch of Help to Build, does the Chancellor agree that making it easier for more people to build their own homes will lead to more, better, greener and cheaper houses that cost less to run, thereby contributing significantly to battling inflation?

Answer from Rishi Sunak

My hon. Friend is an expert on this matter; I am pleased that the Government have listened to him. The home building programme includes a £1.8 billion fund, which will support more homes, quicker homes, and cheaper homes for all citizens.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)