Inquiry into role of Budget watchdog launched by MPs

"An inquiry into the role of the UK government's economic forecaster is being launched by a group of MPs, after the body came under intense scrutiny in the run-up to the Budget. The Treasury Committee will examine the Office for Budget Responsibility's (OBR) first 15 years and consider potential reforms, including any improvements or changes to its remit. The inquiry comes after questions over the OBR's influence were raised ahead of the Budget."

"However, it later emerged the productivity downgrade alone was offset by higher tax receipts and the economic picture was better than widely thought, prompting claims that Reeves had misled the public over the state of public finances, which the chancellor has denied. A senior figure of the OBR, Professor David Miles, told the Treasury committee last week he believed the chancellor's comments were "not inconsistent" with the situation she faced."

MPs have launched an inquiry into the Office for Budget Responsibility to examine its first 15 years and consider reforms to its remit. The inquiry follows scrutiny after the OBR's key economic forecast was published early and its head, Richard Hughes, resigned. The OBR produces forecasts, assesses policy costs and checks whether the chancellor meets self-imposed fiscal rules. A productivity downgrade before the Budget raised questions about the watchdog's influence on tax and spending decisions. Higher tax receipts later offset that downgrade. OBR officials said they were not at war with the Treasury and raised concerns about unauthorised leaks; the chancellor admitted there were too many leaks.

Read at www.bbc.com