On an annual basis, the British economy will contract by 0.2 percent, due to the expected decline in the first quarter. According to the OBR, the body that prepares forecasts, the economy will rebound in the rest of the year and in the coming years.
Hunt estimates government measures to boost purchasing power at 94 billion pounds (107.7 billion euros) over the next two years. In response to the erosion of purchasing power by inflation of more than 10 per cent, the British government is extending energy subsidies to households for another three months.
According to Hunt, inflation will fall from “10.7 percent in the fourth quarter of last year to 2.9 percent by the end of 2023,” based on Balance Sheet Office data. Another measure to boost household purchasing power is to extend the fuel tax freeze. He also promised to end the high energy fees paid by the country’s more than 4 million households, connected via prepaid meters. In addition, free childcare will be expanded. Children between the ages of one and two can now go to childcare for free for thirty hours a week, as was previously the case for children between the ages of three and four.
