Chancellor Philip Hammond has used his Spring Statement to reveal predictions that inflation will return to its 2 per cent target over the next 12 months.
The Chancellor today acknowledged inflation, which has been running above 3 per cent, eroding the value of fixed income savings, was above the level the Bank of England attempts to manage it to.
Hammond said real wage growth was expected to run positive from the first quarter of 2018/19, and would be “steady thereafter”.
He also announced estimates from the Office for Budget Responsibility that jobs growth would continue.
Hammond said: “There will be 500,000 more people enjoying the security of an income by 2022.”
“We reject the [Labour Party’s] doom and gloom about the state of the nation…relentlessly talking Britain down.”
Explaining his decision to scrap a full budget in spring and replace it with a slimmed-down fiscal statement, Hammond said this would provide “greater certainty to businesses and families ahead of the financial year”.