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<p>The government recognises the importance of getting inflation down, and there are
three key things the government is doing to deliver on the plan to halve inflation.</p><p>
</p><p>Firstly, remaining steadfast in our support for the independent MPC at the
Bank of England, as they take action to return inflation to target. Secondly, making
difficult but responsible decisions on tax and spending so we are not adding fuel
to the fire. Third, tackling high energy prices by holding down energy bills for households
and businesses, alongside investing in long-term energy security.</p><p> </p><p>Both
the Bank of England and the Office for Budget Responsibility (OBR) forecast that inflation
will fall notably this year. The government recognises the challenges faced by households
due to elevated cost of living and has provided support worth £3,300 per household
on average, across 2022-23 and 2023-24.</p><p>In addition, the Government has a number
of savings tax reliefs to support to support savers.</p><p> </p><p>Individuals can
save up to £20,000 into their ISA each year and coupled with the Personal Savings
Allowance of up to £1,000 for basic rate taxpayers and up to £500 for higher rate
taxpayers, around 95% of people with savings income pay no tax on that income. ISAs
have been a well-regarded and highly utilised investment and savings vehicle for many.
Around £72 billion was subscribed to Adult ISAs in 2020 to 2021.</p><p> </p><p>The
government keeps ISA policy under review to ensure it remains and appropriate vehicle
for savers.</p><p> </p>
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