Hunt: Gov will do whatever it takes to bring inflation down
Chancellor Jeremy Hunt outlines steps to tackle inflation to help with “the cost-of-living pressures”, which remain “most acute for the poorest families”. Mr Hunt also announces a freeze to alcohol duty, as a visit to the pub has “become more expensive”. Report by Rowlandi. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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NewsTranscript
00:00 When the Prime Minister and I took office, inflation was 11.1%.
00:06 Last week it fell to 4.6%.
00:09 We promised to halve inflation and we have halved it.
00:13 I will not take risks with inflation.
00:17 And the OBR confirmed that the measures I take today
00:20 make inflation lower next year than it would otherwise have been.
00:24 I thank the Independent Bank of England Monetary Policy Committee
00:28 for their crucial role in bringing inflation down
00:32 and we will continue to back them to do whatever it takes until the job is done.
00:37 We will continue to support families in difficulty.
00:41 And today I add four further measures to help with the cost of living.
00:45 Firstly, for those on the lowest incomes,
00:48 I understand the concern some have about the effect on work incentives
00:51 of matching benefit increases to inflation.
00:55 I know there's been some speculation that we would increase benefits next year
00:58 by the lower October figure for inflation.
01:01 But cost of living pressures remain at their most acute for the poorest families.
01:08 Second, because rent can constitute more than half the living costs
01:13 of private renters on the lowest incomes,
01:16 I've listened closely to many colleagues,
01:18 as well as the Institute for Fiscal Studies,
01:20 the Resolution Foundation, Citizens Advice UK
01:24 and the Joseph Rowntree Foundation,
01:26 who said that unfreezing the local housing allowance was an urgent priority.
01:31 Third, although I'm going to increase duty on hand-rolling tobacco
01:35 by an additional 10% above the tobacco duty escalator,
01:39 I know that for many people, going to the pub has become more expensive.
01:44 I've listened closely to the persuasive arguments on alcohol duties.
01:49 So as well as confirming our Brexit pubs guarantee,
01:54 which means the duty on a pint is always lower than in the shops,
01:58 I have decided to freeze all alcohol duty until August 1st next year.
02:04 Pensions.
02:05 The triple lock has helped lift 250,000 older people out of poverty
02:12 since it was instituted by a Conservative government in 2011.