'Time to see the job through': Jeremy Hunt promises pressure on families will 'ease' as he insists inflation is falling

3 September 2023, 07:30 | Updated: 3 September 2023, 11:02

Jeremy Hunt has insisted the government's plan to halve inflation is working
Jeremy Hunt has insisted the government's plan to halve inflation is working. Picture: Getty/ONS
Kieran Kelly

By Kieran Kelly

Jeremy Hunt insisted the government's plan to halve inflation will work as he promised pressure on families and households will ease.

Listen to this article

Loading audio...

The Chancellor acknowledged the lingering pressure that remains on households, though insisted the government's plan is the right course of action.

Mr Hunt said in a statement: "As we move into autumn, I know family budgets are still stretched, but inflation is coming down, and now is the time to see the job through.

"We are on track to halve inflation this year and by sticking to our plan we will ease the pressure on families and businesses alike.

"And it should be no surprise, despite the doubting from some. Latest figures show we have bounced back better than many other G7 economies and are one of the most attractive countries in the world to invest."

Inflation has dropped to 6.8% from a peak of 11.1% last October, but remains far above the Bank of England's 2% target.

Chancellor Jeremy Hunt
Chancellor Jeremy Hunt. Picture: Getty

Labour said the comments were "completely out of touch" with the economic realities faced by families across the UK.

Shadow chancellor Rachel Reeves said: "Jeremy Hunt's comments are completely out of touch to the economic realities facing families across Britain."

Read More: Home Secretary slams cops for 'taking the knee' and 'dancing with activists' as she orders review into 'woke' policing

Read More: Top Tory hits out at 'dependence' on Chinese technology amid warnings Beijing could have tracked Sunak's car

She continued: "Going from no growth to low growth doesn't merit a victory lap and shouldn't be the summit of our ambitions.

"After 13 years of economic failure the Conservatives crashed the economy and left working people worse off, with higher taxes, higher mortgages and higher bills."

Rachel Reeves, Labour's Shadow Chancellor Of The Exchequer
Rachel Reeves, Labour's Shadow Chancellor Of The Exchequer. Picture: Getty

It comes after the Office for National Statistics said it was revising its estimate for gross domestic product (GDP) for 2021 after getting access to new data suggesting Britain's economy had already returned to its pre-Covid levels by then.

By the last three months of 2021, the economy is now estimated to have been 0.6% larger than 2019 levels, compared to a previous estimate that it was 1.2% smaller.

The revision means the UK's economy is now believed to have grown by 8.5% during 2021, compared to the previous estimate of 7.6%, the ONS said.

The ONS did not change its estimate that GDP shrank by 5.8% in 2020.

The news was welcomed by the Chancellor, who was a backbench MP in 2021.

Inflation has eased back to 6.8% from a recent eye-watering peak of 11.1% last October, but is still far from the Bank of England's 2% target.

Prime Minister Rishi Sunak pledged to halve inflation from 10.7% back in January to around 5.3%.

More Latest News

See more More Latest News

Molly-Mae shared a sweet family snap of Tommy Fury and daughter Bambi

Is Molly-Mae back with Tommy Fury? Fans go wild over family photo fuelling reunion rumours

b

Mum of murdered teen Brianna Ghey considers mother of daughter's killer 'a friend' in amazing show of compassion

Adam Woodhouse has been jailed for multiple offences including cyber-flashing, arson with intent and stalking

'I will go to prison for murder': Domestic abuser who made woman's life 'hell' jailed - as victims urged to come forward

A police cordon in Elm Street, South Moor, Stanley, County Durham

Man in 50s shot dead in broad daylight in County Durham named locally

Dagenham

Firefighters battle blaze as vehicles and scrap metal catch fire at industrial estate

Ivan Juric, Manager of Southampton, looks dejected after the team's defeat and confirmed relegation

Southampton suffer earliest relegation in Premier League history after Tottenham defeat

Police at the scene in Elm Street, South Moor, Stanley, County Durham

Man in his 50s shot dead in County Durham in 'truly shocking incident'

Esme Baker, 10, and her father, Lee Baker, 48.

Pictured: Girl, 10, and father, 48, killed in caravan fire at holiday park in Lincolnshire

The scene in Beckenham Place Park in Lewisham, south-east London, after a teenager died after he "got into difficulty" in a lake.

Boy, 15, who died after 'getting into difficulty' while swimming in lake named by police

Keiron Charles

Two teenagers arrested after boy, 17, fatally stabbed in Shepherd's Bush

Formula 1 Japanese Grand Prix 2025

Max Verstappen wins his first race of the season as he fends off Lando Norris at Japanese Grand Prix

A law that bans fake reviews and so called drip pricing for online shopping has come into force.

UK bans fake reviews and hidden fees in new law to protect online shoppers

Lucy Connolly was jailed for 31 months.

Tory councillor's wife who was jailed for inciting racial hatred after Southport attacks 'should be freed', says ex-PM

Chancellor Rachel Reeves said at last year's Budget that the move would raise £25 billion per year by 2029

Prices ‘pushed higher’ and warnings of job losses as National Insurance rise comes into effect

Video footage shows the convoy had emergency lights flashing when it was hit

Israel admits ‘mistakenly’ killing 15 aid workers after video leak contradicted official version of events

Police found two men stabbed on on Erconwald Street in East Acton. One of them died at the scene

Murder probe as man knifed to death in double stabbing in London street