AJ Bell press comment – 20 September 2022
- The influential Treasury Committee has written to Chancellor Kwasi Kwarteng calling for an independent Office for Budget Responsibility (OBR) forecast to be published alongside this Friday’s ‘mini-Budget’ (Correspondence (parliament.uk))
- Committee chair Mel Stride seeks assurance “any major changes to the rates of existing taxes or the introduction of new taxes” will be accompanied by an OBR forecast
- Scrapping the National Insurance rise, freezing energy bills and cutting taxes are all reportedly under consideration by the Government
Tom Selby, head of retirement policy at AJ Bell, comments:
“The greater transparency the OBR has brought to Budgets and Autumn Statements since it was first created in 2010 has been extremely welcome. Previously, such events were all-too-often clouded in complexity and confusion, with ministers desperately trying to spin the implications of the decisions taken favourably for the Government.
“This lack of transparency meant it often took days – if not weeks – for the true impact of any changes announced to be properly understood.
“While such spin is clearly still part-and-parcel of any major fiscal event, the OBR provides an immediate, clear assessment which people know they can trust. This includes detailed analysis of the costs of different policies and economic forecasts.
“The very fact independent scrutiny exists helps hold the Government’s feet to the fire, with ministers acutely aware there is little chance of the impact of decisions being hidden from the public.
“Given the breadth and scale of the announcements reportedly being considered for Friday’s ‘mini-Budget’, it is understandable the Treasury Committee wants to ensure an independent assessment remains part of the process. It would be deeply disappointing if the Government attempts to dodge such scrutiny given the very serious challenges the UK currently faces.”
