Chief Secretary to the Treasury marks the Budget Responsibility Bill receiving Royal Assent

The Budget Responsibility Act has received Royal Assent. As part of the government's commitment to restoring economic stability, the Act, which is one of the first to become law this Parliament, contains a Fiscal Lock to ensure that any major future fiscal announcement will be subject to independent assessment. 

This will mean the Office for Budget Responsibility – the independent watchdog for public finances - will be given the power to make an independent assessment of any single major tax and spending announcement, or series of announcements over the course of a single financial year, which make permanent tax or spending commitments worth more than 1.0% of the UK's GDP, or around £30 billion. 

Responding the Chief Secretary to the Treasury, Darren Jones, said: 

“None of us should forget that the previous Government sidelined the OBR to announce £46bn of unfunded tax cuts which led to an unprecedented increase in borrowing costs, adding hundreds of pounds to rents and mortgages.

“This new law will make it impossible for any future Government to play fast and loose with our public finances again, a vital step as we fix the foundations of the economy and rebuild Britain so that every part of the country can be better off. “