I understand anxiety over rising prices and inflation. I want to assure you that the Government will continue to listen and ensure that the policies in place help those who need it most. I welcome the outlook from the Office for Budget Responsibility, which forecast that inflation will fall by more than half this year, to 2.9 per cent.

I welcome the latest figures from the Office for National Statistics which show that inflation has fallen to 6.7 per cent, down from over 10 per cent at the beginning of the year. This confirms that the Government's plan to halve inflation is working, by getting more people into work, halving energy bills, and taking a responsible approach to the public finances. 

As the Government drives down inflation, its £94 billion cost-of-living support package remains in place - worth £3,300 on average per household. Last winter, the Government covered around half a typical household's energy bill, with £39.2 billion spent between October 2022 and March 2023 - the most ever provided to subsidise household bills in UK history.

As you may be aware, the Government sets a target inflation rate of two per cent for the Bank of England. I have spoken with colleagues at the Treasury who are committed to price stability, and the Chancellor re-affirmed the Bank of England's two per cent consumer price inflation target at Budget 2023.

My colleagues at the Treasury have emphasised that the Bank will be following developments closely and will update its assessment on the balance of the risks to medium-term inflation in light of the relevant data as they emerge, taking action in a timely fashion to guard against inflationary pressures where necessary. At its meeting on the 20 September 2023, the Monetary Policy Committee voted by a majority of 5–4 to maintain the Bank Rate at 5.25 per cent.