Conservatives Accuse Government of “Stoking Inflation” Amid Rising Prices

The Conservative Party has leveled an accusation against the government, claiming it is “stoking inflation,” following a period where price increases reached their highest level in half a year. The United Kingdom’s inflation rate, which tracks changes in prices over time, climbed to 2.3% in the twelve months leading up to October, an increase from 1.7% recorded in September, partly due to a rise in energy costs. During Prime Minister’s Questions, Shadow Cabinet Office minister Alex Burghart, who was substituting for Tory leader Kemi Badenoch, attributed the government’s agreement of pay raises exceeding inflation with unions, along with the previous month’s Budget, as factors that would contribute to increased inflation. However, Deputy Prime Minister Angela Rayner highlighted that inflation reached 11.1% during Burghart’s tenure as a minister under former Prime Minister Liz Truss. Burghart asserted that the government’s choices resulted in “higher inflation for working people.” Addressing the Commons, Burghart stated, “The truth is this government isn’t doing anything to bring down inflation. This government is stoking inflation.” He elaborated, “First, we had above-inflation pay rises for the unions. Then, we had a Budget, which the OBR said was going to push up inflation.” He further added, “This morning we had City economists, real economists, saying that next year inflation would hit 3%.” Rayner, who was standing in for Prime Minister Sir Keir Starmer during his return journey from the G20 summit in Brazil, retorted, stating: “Many people might not know, but [Burghart] was the minister for growth when, under Liz Truss, inflation was 11.1% and growth flatlined, so we’re doing much better than he did.” Conversely, Burghart contended that the conflict in Ukraine and the Covid pandemic were the factors that propelled inflation upwards during the Conservatives’ time in power. He further remarked: “This government is doing it to the British people. High tax, high inflation, low growth, low reform, there’s a word for that, it’s Starmerism.” Since assuming office, the Labour government has consented to pay agreements for workers, including medical professionals and train operators, that exceed the rate of inflation, in an effort to resolve prolonged industrial disputes. Concurrently, the government’s Budget from the previous month unveiled an additional annual expenditure of nearly £70bn. The Office for Budget Responsibility (OBR), an independent body that oversees government spending proposals, indicated that this would fuel increased inflation in the immediate future, while simultaneously fostering economic growth. Furthermore, businesses have cautioned that they will need to raise prices for consumers to offset the expenses of tax increases detailed in the Budget. In defense of the government’s economic approach, Rayner asserted that they had made “difficult decisions to fix the £22bn black hole,” which she alleged was inherited from the Conservatives, concurrently “investing in the future.” Rayner also faced scrutiny regarding modifications to inheritance tax affecting farming enterprises, a policy that led to thousands of individuals demonstrating in London on Tuesday. Effective April 2026, agricultural assets inherited with a value exceeding £1m, which were previously exempt, will become subject to inheritance tax at a rate of 20% – representing half of the standard rate. Additional allowances could permit a married couple or those in a civil partnership to transfer a farm valued at up to £3m. Burghart urged Rayner to pledge against any additional increases to inheritance tax or decreases in agricultural property relief within the current parliamentary term. The Deputy Prime Minister did not provide a direct response but reaffirmed the government’s stance that the “vast majority of estate owners will be totally unaffected” by the alteration.