Budget Resolutions

Just to put this into perspective, the Office for Budget Responsibility’s forecasts are for inflation to be 2.6%, then 2.4% and then coming down to 2%. Although that is higher than we would like—it is above the target—it is not the kind of inflation we have seen in the past under other Governments. The hon. Lady is talking about a fiscal reflation—throwing more money into the economy—but that would increase inflation.