MPs announce inquiry into work of Office for Budget Responsibility

"Meg Hillier, the Labour chair of the committee, said MPs wanted to understand how the role and remit of the OBR had developed, and whether its relationship with the Treasury could be reformed in order to ensure that it helps to deliver positive economic outcomes for the UK. She played down concerns held by the committee about potential bias at the OBR but said issues raised by the media, backbench MPs and the public should be tackled."

"The OBR is an important part of the UK's fiscal framework. But it is often castigated by frustrated economists who feel they should be in charge because they shout the loudest. And we need only remember Liz Truss's mini-budget to remind ourselves of what happens when the OBR is sidelined. This inquiry is not a stick to beat the OBR with. What my committee intends to do is have an honest conversation about what the watchdog does well and where it needs to do better."

An all-party Commons Treasury committee will investigate the Office for Budget Responsibility's forecasting performance, impartiality and evolving remit fifteen years after its creation. The inquiry follows a row involving Chancellor Rachel Reeves and the OBR, including complaints by former OBR head Richard Hughes about leaks and misconceptions, his questioning of claims around tax decisions, and his resignation after an early release of budget documents. The committee will assess whether reforms to the OBR's role or its relationship with the Treasury are needed to support positive economic outcomes. The chair emphasised addressing concerns from media, MPs and the public without treating the inquiry as punitive.

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