Treasury Committee calls for independent economic forecast to be published alongside emergency budget

Tuesday, 20 September 2022 15:28

The Treasury Committee has requested assurance that the Government will publish an Office for Budget Responsibility (OBR) forecast alongside this month’s emergency fiscal event. In a letter to the Chancellor of the Exchequer, the Committee requests confirmation that, if the fiscal event involves major changes to taxation, the Government would publish an accompanying OBR forecast, outlining the health of the nation’s finances. Last month, the Committee asked if the...Request free trial

The Treasury Committee has requested assurance that the Government will publish an Office for Budget Responsibility (OBR) forecast alongside this month’s emergency fiscal event.

In a letter to the Chancellor of the Exchequer, the Committee requests confirmation that, if the fiscal event involves major changes to taxation, the Government would publish an accompanying OBR forecast, outlining the health of the nation’s finances.

Last month, the Committee asked if the OBR could produce a forecast to be published alongside any emergency budget or significant fiscal event, and whether work had already begun.

In response, the OBR confirmed it began preparatory work on a forecast on 29 July following agreement with the Treasury. While the forecast may not be as comprehensive as at previous budgets, the OBR committed to providing the most complete picture of the economic outlook as possible, and to a standard that meets the requirements of the OBR Charter.

In a separate response, the then Chancellor, Rt. Hon. Nadhim Zahawi MP, stated that, while preparatory work has begun, the decision to set a date for a new forecast is one for the incoming Chancellor.

The Treasury usually gives the OBR ten weeks’ notice of a fiscal event, to enable it to provide an independent forecast of the economy and the UK’s fiscal position.

Chair's comment

Commenting on the correspondence, Rt. Hon. Mel Stride MP, Chair of the Treasury Committee, said:

"We congratulate the new Chancellor on his appointment and look forward to a constructive relationship. As a Committee, we have in the past reported to the House that we consider it very important that significant changes to taxation are announced in a fiscal event alongside an OBR forecast. These forecasts are a vital indicator of the health of the nation’s finances, and provide reassurance and confidence to international markets and investors.

“There has been a deterioration in our economic outlook since the last OBR forecast in March. There have been significant fiscal interventions since then and we are told there will be further significant interventions including major permanent tax cuts to be announced on Friday. Under these circumstances, it is vital that an independent OBR forecast is provided.”