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<p>On 3 February, the Bank of England published their Monetary Policy Report, which
updated their forecasts for a range of economic indicators. The government continually
monitors such forecasts and economic developments, including changes to wages, to
consider the impact on firms and households.</p><p> </p><p>The government is taking
action to support a high-productivity, growing economy. This includes through a £3.8bn
investment in skills at the Budget and Spending Review last year.</p><p> </p><p>As
the global economy recovers from Covid, many economies are experiencing high inflation,
in part due to pressures from rising energy prices and disruptions to global supply
chains. However, the government understands people’s concerns around increasing prices.</p><p>
</p><p>We are taking targeted action worth around £12 billion this financial year
and next to help families with the cost of living. We are cutting the Universal Credit
taper to make sure work pays, freezing alcohol and fuel duties to keep costs down,
and providing support to help households with the costs of essentials. Alongside this,
the government has announced a package of support to help households with rising energy
bills, worth £9.1 billion in 2022-23.</p><p> </p><p>The separation of fiscal and monetary
decisions is a key feature of the UK’s economic framework, and essential for the effective
delivery of policy. The government therefore does not comment on the conduct or effectiveness
of monetary policy.</p><p> </p>
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