Chamber and committees

Another group to consider is people with fluctuating conditions that mean one day they will feel good and can work eight hours, but on another day they will not feel so good. We have had evidence that, in some sectors, it is easier for employers to be supportive. If a person is doing office work, it does not matter whether they do all of their work on Tuesday or they do all of it on Wednesday, but if they are serving in a restaurant they have to be there on certain days. Is it more difficult for some sectors to be flexible?

Another group to consider is those who already have a long-term disability or who have health issues because of Covid, who are very nervous about going back to work and being with a lot of people. I guess that it could be difficult for employers to be able to adapt to that.

We have met various people over the past few weeks, and a subject that we discussed with some people with experience is early retirement. There seems to be quite a mixed picture in that regard. There are clearly some professional people with good pensions who, in their mid-50s or at 60, feel that they want a different work-life balance and take retirement. However, that means that the economy loses their experience and their energy—at least in paid employment; they may be doing other things.

Do we just accept that people in that group have gone and we cannot do anything about it, or should we be trying to bring some of them back into the labour market?

I am interested in the level of interest rates. At 4 per cent, they are felt to be high at the moment, but they are considerably lower than inflation. If that was to continue in the long term, would everybody not just borrow and make a profit? Are we in an unusual situation at the moment, or could it continue to be the case in the long term that inflation is higher than interest rates?

My understanding is that the OBR’s forecasts assume quite a big increase in fuel duty next April. The suggestion was that, if that does not go ahead, there could be a £6 billion hole in the UK Government’s finances. Can you say anything about that?

That is very helpful. Thank you.

I am still slightly puzzled, but I accept that there is not a clear-cut answer.

Liz Smith asked about the prices of gas and food and what was driving inflation. Can we compare the situation here with that in other countries? Are other countries—western countries, especially—in much the same position? Are there differences in the inflation level in neighbouring or similar countries, or in the reasons for inflation?

Okay, that is nice and clear. That is fine.

I am happy to ask a simple question and get a simple answer. That is commendable.

Paragraph 45 of the guide talks about the emergency budget review:

“While the amounts outlined in the letter are savings based on the in-year budget monitoring position, these do not necessarily correspond to a budget being formally surrendered as part of a gross funding movement.”

I am struggling with the phrase “budget being formally surrendered” and what that would mean. It goes on:

“This is because these savings may be against forecast pressures”

that

“are being transferred internally”.

Again, I am not sure that I understand what “forecast pressures” that are “being transferred internally” means.

Right. Some of them are savings that would have been made anyway, so the EBR, effectively, does not impact on that area.