In this week’s public policy bulletin we take a look at proposals issued this week by the Department of Finance on the set up of a new national public savings vehicle. We also review the latest inflation estimates from the CSO as well as the launch of a public consultation on the right to request remote working by the WRC. In addition, we take a look at the latest data on the growth of the UK economy from the Office for National Statistics.
Department of Finance publishes proposals to establish long-term public savings vehicle
The Department of Finance has this week published a paper entitled ‘Future-proofing the Public Finances – the Next Steps’. This scoping paper outlines some of the merits of establishing a long-term public savings vehicle in Ireland. With the Government forecasting budget surpluses of up to €65 billion between now and 2026, the proposed long-term savings fund would be capitalised with some portion of windfall tax receipts and future budgetary surpluses. According to the paper, this approach would follow a well-trodden path of advanced countries establishing sovereign wealth funds in order to build fiscal buffers in good times to part pre-fund future liabilities. It is understood that the Minister for Finance is planning to bring forward legislation in the coming weeks to establish such a long-term savings vehicle, similar to sovereign wealth funds that have operated in Norway, Australia and Japan.
Slight ease in rate of inflation recorded in April – CSO
The CSO this week published its latest Consumer Price Index for April 2023. According to the Index, inflation fell to 7.2 percent in the 12 months to April, down from 7.7 percent in March – marking its lowest level in a year. The most significant increases in the year were seen in the costs of housing, water, electricity, gas and other fuels which rose by 20.7 percent, while food and non-alcoholic beverage prices increased by 13.1 percent. On an annual basis, the Index found that electricity prices jumped by a total of 51.3 percent in April, while gas prices increased by 55.8 percent. The CSO noted that the cost of education and transport were the only divisions to show a decrease when compared with April of last year, with prices in the sectors down 6.3 percent and 2.3 percent respectively.
WRC launches public consultation on code of practice for remote working
The Workplace Relations Commission (WRC) has launched its consultation on the Code of Practice that will govern the right to request remote working under the Work Life Balance and Miscellaneous Provisions Act 2023. The code will set out practical guidance for employers and employees when it comes to requesting remote or flexible work while complaints can be taken to the WRC where an employer has not complied with the code. The deadline for submissions from stakeholders is 5pm on 9th of June 2023. Further details regarding the consultation process can be found here.
UK economy grows slightly in first quarter but slumps unexpectedly in March
The UK economy marginally grew over the first quarter of the year, according to official data from the Office for National Statistics (ONS). UK gross domestic product (GDP) increased by 0.1 percent between January and March, the lowest amount possible to still be classed as growth as IT and construction sector activity offset the impact of ongoing strikes in other industries. However, the economy shrank 0.3 percent in March as retail and car sales fell sharply, and public sector strikes intensified. Contraction also came thanks to a 0.5 percent fall in services production while distribution and retail also underperformed as cost of living pressures hit consumers.
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