To the management and staff of all institutions – small and large alike – it is about the work created by regulation. It is about the one-off costs of, for example, procuring new software. But it is also about the running costs, ie the costs of keeping systems operational or of personnel.
As in other areas, we do not have fixed views, but instead we are continually testing, learning and re-testing. Confident but cautious A second consideration shaping our recent forecasts is the attitude of households to spending and borrowing.