Following the Spending Review speech last week, the Government released the response to the RPI reform consultation. This briefing provides a summary of the position and its implications.
What was announced:
• The chancellor will not consent to RPI being reformed before 2030
• The UK Statistics Authority confirmed that its preference for reforming RPI is to align with CPIH from February 2030
• The government also confirmed there will be no compensation for holders of index-linked gilts
As a result, RPI looks more certain to be aligned with CPIH from 2030 but concerns about it occurring before then have been allayed.