that welfare benefits have to be indexed by a higher rate. the government also feeling squeeze for higher inflation. partly from benefits but apart from the fact that higher inflation pushes up the cost of government debt. around third of our debt is directly indexed to inflation. it s inflation linked in its cost goes up pound for pound but how much inflation goes out. . ., ., . pound but how much inflation goes out. ., . ., ., out. economic growth forecast quite a lot lower than out. economic growth forecast quite a lot lower than we out. economic growth forecast quite a lot lower than we previously i a lot lower than we previously thought. how do you boost growth when people can t afford to spend as much as they did last year even? taste much as they did last year even? we have much as they did last year even? - have not gone a growth forecast for the coming year from 6% to under 4%. that s largely because higher inflation is rolling people s real incomes in their consuming as w
today at six, as the cost of living crisis bites, the chancellor sets out his plans to help hard pressed families. delivering his spring statement, he warned we should all be prepared for the economy to worsen, potentially significantly. but he told the commons new government tax cuts would help ease the burden for millions. a tax plan that cuts taxes on working families by over £330, cuts taxes on fuel by 5p a litre, cut taxes on business and, yes, for the first time in a long time, cuts income tax. inflation is at its highest level for 30 years, and rising. energy prices at record highs. people are worried sick.
rates up it s gonna squeeze people leave a mark? rates up it s gonna squeeze people leave a mark? , . , , leave a mark? they have put them up b more leave a mark? they have put them up by more than leave a mark? they have put them up by more than we leave a mark? they have put them up by more than we expected leave a mark? they have put them up by more than we expected back i by more than we expected back in october. in part to reflect the fact that we are seeing notjust imported inflation but also growing domestic inflation but also growing domestic in the uk. energy prices are high at the moment, we do expect them to fall of the medium term. that helps to bring down inflation as we get beyond 2023 into the middle of the decade. inflation has a. growth falls below the bank of england. before returning to its 2% target over the medium term. that does mean that we do assume that interest rates go up in order to get those domestic inflationary prices in check. to domestic inflatio
the cost of living. prices are rising at the fastest level in 30 years outstripping increases to wages and benefits. is there more pain to come, chancellor? and if you think you re really feeling a pinch right now, the message from the chancellor today that you may have seen nothing yet. statistics published this morning show inflation in february was 6.2%, lower than the us and broadly in line with the euro area. disruptions to global supply chains and energy markets combined with the economic response to putin s aggression mean the 0br expect inflation to rise further, averaging 7.4% this year. but there was a little bit of brighter news borrowing is lower and the money coming into the treasury is higher than previously forecast,
sense. i afternoon! he will make far more sense. ., , afternoon! he will make far more sense. .,, , , afternoon! he will make far more sense. , , ., sense. i hope so. this is all auainst sense. i hope so. this is all against a sense. i hope so. this is all against a picture sense. i hope so. this is all against a picture of - sense. i hope so. this is all against a picture of surging | against a picture of surging inflation. you can look at how inflation s doing in the last 30 years. we have the highest. it s shows how low it s been as much as how high it is now, but it s not going to stop there. the prediction was it would settle down where the orange line is, but it s now predicted it will shoot up where that red line is. 8.7% is the prediction for where it will peak, an average of seven point 7.4%. although you have wages, they won t be enough to keep up. that nasty little red line is the size of the falling living standards that s been predicted by the office for budget resp