The Department told us that, although budgets are now set, it continues to have discussions with HM Treasury about how it manages inflation on programmes like HS2 in order to deal with any issues that may arise later in the year. The Department also acknowledged the value for money implications of any further reduction in spending during the year, telling us that it and HM Treasury recognise that for such programmes it is ‘almost impossible—and certainly impossible in a way that is consistent...

The Department told us that, although budgets are now set, it continues to have discussions with HM Treasury about how it manages inflation on programmes like HS2 in order to deal with any issues that may arise later in the year. The Department also acknowledged the value for money implications of any further reduction in spending during the year, telling us that it and HM Treasury recognise that for such programmes it is ‘almost impossible—and certainly impossible in a way that is consistent with value for money—to put the brakes on expenditure mid-year’.41 Type: conclusion | Number: 17 | Response status: not_addressed Government response: 4.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2024 4.2 HM Treasury’s standard approach, as set out in Consolidated Budget Guidance and reaffirmed in the 2022 Autumn Statement, is that departments must absorb inflationary pressures within their exi