Recommendation 19

IPA also characterised inflationary pressures as a “very real issue” which was “beyond a risk: it was a reality”. For example, it quoted inflation at 23% over the last six months on materials. IPA concluded that programmes will need to be more productive to help offset inflationary pressures.57 HM Treasury recognised that all departments were facing inflationary pressures with some struggling to evidence the impact of these pressures. This may be, for example, because some programmes were progressing commercial negotiations or had not yet reached a stage where the impact of inflation could be quantified.. HM Treasury also said that inflationary pressures were coming at the same time as supply chain challenges. It is looking to complete an exercise by autumn 2022 to provide an improved estimate of the impact of inflation on departments.58 56 Q 50 57 Q 55 58 Qq 60, 62 14 Improving the Accounting Officer Assessment process