Forecasting the economy, including the effect of Government policy decisions on inflation, is the responsibility of the independent Office for Budget Responsibility (OBR). The OBR set out the impact of policy measures on inflation in its Autumn Budget 2025 forecast, including the rise in tobacco duty. The OBR have not adjusted their inflation forecast for the rise in tobacco duty.

The Chancellor asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth. Considering all policies, the OBR expect budget measures to reduce CPI inflation by 0.4pp in 2026/27.

At Autumn Budget 2024, the Government renewed the commitment to a tobacco duty escalator, which increases duty by 2 percent above RPI inflation at each Budget, until the end of the current Parliament. At Autumn Budget 2025, the duty on all tobacco products was increased in line with this commitment. The government also confirmed further increases of 2% above RPI plus an additional £2.20 per 100 cigarettes and per 50g of other tobacco products to take effect from 1 October 2026, alongside the introduction of Vaping Duty. This is part of the Government’s focus on health prevention and to continue our drive to reduce smoking prevalence.

The independent Office for Budget Responsibility (OBR) is responsible for estimating the impact of Government policies on inflation. The OBR did not include an assessment on the contribution of tobacco excise duty to inflation in either the October 2024 or March 2025 Economic and Fiscal Outlook.

No assessment has been made. Palliative and end of life care, including hospice care, is commissioned locally by integrated care boards (ICBs) in response to the needs of their local population. Any assessment would therefore be made at a local level.

Following a HM Treasury-led review into the Energy Bill Relief Scheme, the new Energy Bill Discount Scheme will run from April 2023 until March 2024 and continue to provide a discount to eligible non-domestic customers, including hospices. At a national level, NHS England has released £1.5 billion of additional funding to ICBs to provide support for inflation, with ICBs deciding how best to distribute this funding within their systems.

Most hospices are independent, charitable organisations that remain free to set salary rates along with other terms and conditions at a level that reflects the skills and experience of their staff.

The student loan repayment system incorporates a number of protections for those making loan repayments. Repayments are calculated as a fixed percentage of earnings above the relevant repayment threshold, currently £27,295 for a post 2012 undergraduate plan and £21,000 for a post graduate loan. These do not change as a result of the interest rate charged or the amount borrowed. If a borrower’s income drops, so does the amount they repay. If income is below the relevant repayment threshold, or a borrower is not earning, then they do not have to make repayments at all. Any outstanding debt, including interest accrued, is written off after the loan term ends, or in case of death or disability, at no detriment to the borrower. There are no commercial loans that offer this level of protection.

To further protect borrowers, the government, by law, must cap maximum student loan rates to ensure the interest rate charged on the loan is in line with market rates for comparable unsecured personal loans. The government monitors student loan rates against the Bank of England’s data series for the effective interest rates on new and existing unsecured personal loans.

The government recognises the additional cost of living pressures that have arisen this year. We have taken action to support people with the cost of living, including through the Energy Bill Relief Scheme, which provides a price reduction over the winter period. This is alongside the Energy Price Guarantee which is saving the average household over £900.

The Chancellor is fully committed to the independence of the Monetary Policy Committee (MPC) in setting monetary policy, and has no plans to review this. At Autumn Statement on 17 November, the Chancellor re-affirmed the MPC’s remit and primary target of achieving 2% CPI year on year, and stated that this government will not change the definition of price stability.

The Chancellor and the Governor of the Bank of England remain in close contact to ensure that monetary and fiscal policy are coordinated. The government also continually monitors economic developments, including inflation, to consider their impact on businesses and households. The government does not comment on the conduct or effectiveness of monetary policy.

The Chancellor is fully committed to the independence of the Monetary Policy Committee (MPC) in setting monetary policy, and has no plans to review this. At Autumn Statement on 17 November, the Chancellor re-affirmed the MPC’s remit and primary target of achieving 2% CPI year on year, and stated that this government will not change the definition of price stability.

The Chancellor and the Governor of the Bank of England remain in close contact to ensure that monetary and fiscal policy are coordinated. The government also continually monitors economic developments, including inflation, to consider their impact on businesses and households. The government does not comment on the conduct or effectiveness of monetary policy.

The Department reports to parliament on the status of the programme every six months. The most recent report reflected the impact of high inflation, which has been prevalent across the whole economy and the construction sector which experienced 18% inflation from August 2021 to August 2022.

Transport in London is devolved and is the responsibility of the Mayor of London and Transport for London (TfL). While the Department for Transport works closely with TfL on a range of issues, decisions on spending are entirely matters for TfL and/or the London boroughs where funding is devolved at the borough level. The Department is working closely with local government (including the Association for Directors of Environment, Economy, Planning and Transport) to understand increases in the cost of road maintenance, as well as associated supply chain issues.