OBR a backseat driver with out-of-date maps, thinktanks tell Rachel Reeves

"It has become increasingly clear that our current framework is contributing to instability, short-termist underinvestment and a lack of focus on long-term risks and opportunities."

"The OBR is a backseat driver with out-of-date maps: it obstructs long-term planning and investment at a moment when Britain needs both."

"While independent scrutiny of the government's spending plans is important, our current system means small changes in uncertain forecasts lead to governments making kneejerk policy changes of huge consequence. This is no way to run an economy."

An alliance of thinktanks including Progress, the New Economics Foundation, Common Wealth, and the Women's Budget Group has called for reform of the Office for Budget Responsibility ahead of the spring forecast. They argue the current framework contributes to instability, short-termist underinvestment, and insufficient focus on long-term risks and opportunities. Critics contend the OBR obstructs long-term planning, inadequately accounts for investment benefits, and creates pressure for hasty policy decisions. The pass-fail verdict system on fiscal rules has led to consequential decisions like the £5 billion welfare cuts from last year's spring statement. The Institute for Fiscal Studies similarly called for fiscal rules overhaul.

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