Source · Select Committees · Treasury Committee
Recommendation 24
24
Paragraph: 176
It is notable that the synchronisation of the OBR’s analysis and the Government’s announcements appears...
Conclusion
It is notable that the synchronisation of the OBR’s analysis and the Government’s announcements appears to have been challenged in the crisis. The OBR scenario analysis undertaken in the Fiscal Sustainability Report did not include the Government’s measures in its Plan for Jobs announced just a week before. This could be because the crisis requires a rapid policy response, which means that it was not always possible to inform the OBR of policy announcements in the normal working timetable.
Paragraph Reference:
176
Government Response
Acknowledged
HM Government
Acknowledged
On your recommendation regarding the OBR’s role in monitoring levelling-up, the OBR have a clearly defined mandate, outlined in the Budget Responsibility and National Audit Act 2011. As part of this, the OBR’s responsibilities are examining and reporting on the sustainability of the public finances at a national level although they do undertake work on a sub-national level; they publish devolved tax and spending forecasts alongside each of their main UK forecasts and provide the Welsh Government with independent scrutiny of its forecasts in the Welsh taxes outlook. There have been three reviews of the OBR to date, all of which have recommended caution be exercised in considering the expansion of the OBR’s mandate. The OECD Review published in September 2020 highlighted mission creep as one of four ongoing and potential risks for the OBR, highlighting how additional responsibilities could change the character of the OBR from the focused and agile institution it currently is.