Mr. Sebastian Barnes:

Yes, there is scope for additional targeted measures in two senses. First, in terms of the budgetary numbers and temporary measures, there is still space because there are still contingencies that are likely to be available this year, even within the existing budget. Second, looking ahead, or taking this year and next year together, within the Government's spending rule there would be space to do that. However, as we have highlighted, there are choices between how far we take measures to deal with the cost-of-living crisis as compared to other policy initiatives the Government might want to take. The reality is that we are having to pay more for imports of energy and food and if we need to provide more help to some households, that is going to cost extra money. That needs to be weighed against other potential alternatives.

The other way in which there is space, potentially, is that there is some room to do that without over-stimulating the economy. What is good about targeted measures is that rather than just pumping money in across the board, they give it to those who really need it the most. Lower income households spend around one third of their income on food and energy so this is a huge shock for people who do not have many savings to fall back on. For wealthier households, it is a much lower share of their spending and of course, they are in a better starting position as well.