Fri, 12 Dec 2025

Fri, 12 Dec 2025 Inquiry into role of Budget watchdog launched by MPs

It comes after intense scrutiny of the Office for Budget Responsibility in the run-up to the Budget.
A UK parliamentary committee has launched an inquiry into the Office for Budget Responsibility (OBR) after controversy surrounding its role and influence in the lead-up to the Budget. The Treasury Committee will examine the OBR's first 15 years, potential reforms, and improvements or changes to its remit. The inquiry comes after questions were raised about the OBR's power and influence over government tax and spending decisions. The OBR was criticized for lowering its forecast for productivity ahead of the Budget, which Chancellor Rachel Reeves used to argue that meeting her spending rules would be harder. However, it later emerged that higher tax receipts offset the productivity downgrade, and the economic picture was better than initially thought. This led some experts to accuse Reeves of misleading the public over the state of public finances, a claim she has denied. The OBR's head resigned following an error which saw its key forecast published an hour before the Budget speech. The OBR also came under scrutiny for publishing a document early on Budget day, confirming new measures before they were announced by Reeves. The Treasury Committee will consider how well the OBR communicates its forecasts and analysis, whether it has improved Treasury's forecasting processes, and whether it has performed its role with impartiality and transparency. The committee aims to have an "honest conversation" about what the watchdog does well and where it needs to do better.
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