TUC urges new chancellor to overhaul OBR amid growth concerns

The Trades Union Congress is demanding that Chancellor John Healey order a “root and branch” audit of the Office for Budget Responsibility, contending that its forecasting approach discourages public investment. General secretary Paul Nowak argues the OBR still embeds austerity-era logic that underestimates the benefits of government spending. The union’s appeal aligns with criticism from think-tanks like the Good Growth Foundation and the left-wing New Economics Foundation.

In addition, the TUC is urging the government to broaden the National Wealth Fund’s scope so it can finance projects with returns up to 15 years. Healey’s predecessor, Rachel Reeves, recently named economics professor Jonathan Haskel as the OBR chair after Richard Hughes resigned. Haskel has told MPs that the medium-term outlook includes higher interest rates, slower GDP growth and a poor fiscal position. The Treasury maintains that fiscal discipline remains essential for economic stability.