Professor Michael McMahon:

There are a few parts to that. Yes, we would agree that as set out in the summer economic statement and given where the economy is now, we would assess that the stance is expansionary. Our own estimates of the effects of the extra would be about 0.2% to 0.4%. We are in the range but maybe in the lower end. The way I would present that number would be to think about taking that across the whole of the forecast out to 2026. These are not just breaches next year but breaches every year to 2026. We estimate this would add about 1% to the price level. If we took an alternative stance, namely, the countercyclical stance, we could imagine doing the opposite and taking 1% off the price level. That is a two percentage point swing or the price level being 2% differentially affected by this change in stance because of the summer economic statement view.