Mr. Sebastian Barnes:

Actually, I did want to comment on that. It speaks to an important issue, which is that we have to tackle both the short-run challenges around the cost of living and the longer run challenges we have talked about, such as an excessive reliance on corporation tax; climate change; pensions, which we have not mentioned much; and rising healthcare costs. We need to tackle all these things while maintaining the economy and public finances on a sustainable path. The Government's 5% rule provides useful guidance in this context, keeping Government spending in line with the underlying potential of the economy. The flip side of that is that choices have to be made between different things because we cannot keep putting money in the pocket without saying where it will come from.

On costs, this high-cost environment highlights the contribution of domestic factors to high inflation or the high cost of living. Housing is an issue we are aware of, and there are a number of other things. There are other ways of bringing down the cost of living by tackling some of the structural reasons some things are expensive in this country. Maybe those become more important as inflation goes up for other reasons.