In the second half of last year, government spending was growing at about 3.5%, and we did indicate that if that rate was sustained, it would boost demand and could make it more difficult to get inflation back down. Our forecast for the next couple of years is about 2% to 2.5%. As I said, that's broadly in line with potential output. That is an upward revision from what we had in our forecast in January, because it does incorporate the new spending, the new fiscal measures in the latest budget.
On April 18th, 2023. See this statement in context.