To ask His Majesty's Government what steps they are taking to sustain and increase economic confidence among consumers.
Answered on
8 December 2023
Consumer and business confidence is intrinsically linked to the broader economic outlook. To sustain consumer confidence, consumers need to feel assured that their government is taking the long-term decisions necessary to strengthen the economy and build a brighter future.
Promoting macroeconomic stability is central to the Government’s economic priorities. In January 2023 the Prime Minister set out three economic priorities: to halve inflation, grow the economy and reduce debt. Progress is being made against all three of these:
- Inflation is less than half its peak.
- Economic growth has been resilient, and the economy is now expected to grow in every year of the forecast period, as assessed by the OBR in their recent forecast.
- Debt is forecast to fall as a proportion of GDP over the medium term, with greater headroom than at Spring Budget 2023.
Consumers are directly benefitting from the responsible approach taken to prioritising economic stability and making work pay. The cut in National Insurance contributions means the average worker on £35,400 will receive a tax cut in 2024-25 of over £450. From 1 April 2024, the National Living Wage (NLW) will increase by 9.8% to £11.44, representing an increase of over £1,800 to the annual earnings of a full-time worker on the NLW.