Treasury Committee defends OBR independence amid calls for reform

With the next Budget on the horizon, the Commons Treasury Committee issued a statement urging that the Office for Budget Responsibility not be held responsible for the government’s limited fiscal space. Members rejected “siren calls” for fundamental changes, arguing that such moves usually aim to create room for extra spending rather than improve economic policy. Chairwoman Dame Meg Hillier stressed that the OBR’s forecasts become more crucial when budgets are tight, and that the body should remain an independent voice in economic discussions.

The committee recommended publishing an additional 10-year outlook alongside the standard five-year forecasts, a proposal endorsed by former US CBO director Professor Douglas Elmendorf. It also called for parliamentary debate on the OBR’s long-term Fiscal Risks and Sustainability report, which contains 50-year projections. The government is expected to respond within two months.