COULD working from home be part of our lives for longer than previously thought?

In recent weeks city centres such as Glasgow have become busier with office workers following the end to the working-from-home directive in late January.

The gradual re-emergence of commuters will have been warmly welcomed by the many businesses in urban areas that rely on their custom, having lived on scraps for so much of the last two years.

And many workers themselves will have relished the opportunity to reconnect with colleagues in offices again, enjoying the benefits of “in-person” contact that cannot easily be replicated through working remotely. These include the hugely important learning opportunity for younger entrants to the workforce through observing how more experienced counterparts go about their business day to day.

But just as we may have thought the return to the office would gradually be stepped up as the year progressed, things no longer seem as certain as they once were.

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While some business leaders will prefer having their employees back in the office, it would be no surprise if the deepening cost-of-living crisis instils a reluctance among staff to get fully back on the commuting hamster wheel.

There has always been a financial cost to simply getting to work, be it rail fares, petrol prices or buying lunch. But, with inflation running at a rate not seen for 30 years, the cost increases are the highest in a generation.

Annual UK consumer prices index (CPI) inflation rose to seven per cent in March, official figures show, from 6.2% in February. And the cost of living is poised to become even higher soon.

The Bank of England now expects annual CPI inflation to reach 8% later this spring, after the brutal 54% rise in the energy price cap that took place on April 1 feeds through, and warns it could increase even further this year.

The rising cost of everyday living is causing real concern that even more people will be pushed into poverty, with some forced to make the grim choice between feeding their families or heating their homes. Already there are reports of increased visits to, and reliance on, food banks.

For those who need to travel to work, the costs have increased in recent months. The price of both petrol and diesel continues to surge – figures from the AA suggest the price of unleaded petrol had risen to 163.8p per litre by March 31, up from 148.1p/ litre the previous month, with diesel rising to 173.8p/ litre from 151.6p/ litre – while rail fares were put up by 3.8% by Transport Scotland on January 24. Bus fares have been going up across the country too.

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Meanwhile, commuters may also have noted that the price of a coffee has gone up at the major high-street chains, and that it costs more to buy a sandwich and snacks in metro-based grocery stores.

With employees in certain jobs having got used to saving money during lockdown, the extent to which they now find themselves burning through cash simply by going to work may be causing alarm – especially considering the rising household energy bills with which they are now faced.

In these circumstances, it would not be surprising if employees sought to mitigate these additional costs by pushing back on the great office return.

Of course, it may purely be in the gift of employers to decide where staff are based, particularly if such matters are stipulated in contracts. And it should be noted that many employers do now operate hybrid models in response to the pandemic, allowing staff to split their working week between home and the office.

But given the rise in the cost of living it would not be surprising if that balance is tilted back towards working from home, at least until inflation begins to fall back. Employers may not be obliged to do so, but offering such flexibility might be in the best interests of harmonious relations with staff, even as a short-term measure.

It was interesting to note reports in recent days of a move by the European Commission to urge people to work from home once more, albeit in a different context.

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Under the Playing My Part plan, which has been developed with the International Energy Agency, Commission chiefs are encouraging the move as part of a wider effort to reduce the bloc’s reliance on Russian fuel, while also showing solidarity with the people of Ukraine. The measures outlined in the plan are also designed to help in the battle against climate change.

The UK does not rely on Russia to the same extent in terms of oil and gas, but the humble concept of working from home is nonetheless an interesting suggestion in terms of cutting energy consumption.

The new initiative from the European Commission also illustrates that there are many dimensions to the working-from-home debate.

Another is how working from home affects businesses in town and city centres, from shops and cafes to bars and restaurants, which have been starved of income since the pandemic began.

Such businesses will have welcomed the return of office workers with open arms, especially as they too are facing deep challenges because of inflationary pressures. Pubs and restaurants are striving to attract custom and offer competitive prices while contending with the rising cost of energy, staff, food and drink.

Businesses in the hospitality sector have also seen the bulk of government support that was brought in to help them through the pandemic withdrawn, with value-added tax having been restored in stages to its normal rate of 20 per cent in April. The rate of VAT applied to hospitality was reduced after the pandemic took hold but has gradually been restored to its usual level – despite vigorous opposition from the industry.

Firms in hospitality and also in retail and leisure are paying business rates again, and will soon be paying them at the normal level once more in a few weeks, after temporary discounts end.

For firms in these sectors, any shift back to home working among office-based staff would be greeted with dismay, even though it may be financially more beneficial for the workers concerned.

It is difficult to see any winners emerging from the current crisis in the months ahead.