Labour's relationship with the Office for Budget Responsibility (OBR) has soured, with No 10 saying they wish to scrap it rather than strengthen it. Following a challenging spring statement, there's frustration over the OBR's forecasts, which have contradicted Chancellor Rachel Reeves' expectations for disability payment cuts. Despite previously strengthening the watchdog through the Budget Responsibility Act, now there's a feeling that the OBR is overly cautious and not reflective of proposed market-impacting changes. Keir Starmer's team expresses a desire for more radical policies but must navigate market concerns if they were to consider changes to the OBR.
The average opinion is now I wish we could scrap the OBR. In September it was we should strengthen the OBR, one source said, showing how far things have come.
The OBR is either too cautious or cannot adequately reflect measures that No 10 believes will have a bigger impact on market confidence.
#labour-party #office-for-budget-responsibility #fiscal-policy #market-confidence #political-frustration
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