Tue, 02 Dec 2025

Tue, 02 Dec 2025 OBR head's resignation leaves potential landmines for Reeves

Chancellor's next mission to find a respected and credible economist to run the OBR will require careful balance
There are several potential candidates, but any decision could be influenced by politics, with some pressure to choose someone who is willing to give more credit to the Government's policies. However, if the Chancellor interferes too much with the OBR's independence, it could damage market credibility and increase borrowing costs. The new head will have to navigate existing tensions between the OBR and the Government, including the issue of scoring government policies. The previous chairman, Richard Hughes, refused to give credit to the Government for "pro-growth" policies unless they met a certain threshold. Hughes had also faced criticism from some Cabinet ministers over his role in initiating a costing for special educational needs in England, which was seen as an attack on the Government's priorities. The new relationship between the OBR and the Government will be critical, with the Chancellor having to balance the need for independent forecasting with the pressure to give more credit to their policies.
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