Richard Hughes, head of the OBR, stated that the Treasury's failure to disclose £9.5bn of spending would have materially altered their economic forecasts, emphasizing: "What you don't know, you don't know". He pointed out that transparency is crucial for accurate economic projection, which is vital ahead of elections and budget announcements.
Meg Hillier, chair of the Treasury committee, indicated the need for an investigation into potential breaches of law regarding the Treasury's disclosure obligations. She stressed restoring accountability and transparency in fiscal matters is essential for public trust.
Hughes announced a shift from a 'system of trust' to 'trust but verify,' signifying a significant change in how the OBR interacts with the Treasury. This new approach aims to prevent past failures in oversight and enhance scrutiny of departmental budgets.
Highlighting the relationship gap, Hughes noted that the OBR would conduct greater scrutiny on departmental spending limits to ensure fiscal pressures are correctly disclosed and managed, stating: "It will involve greater scrutiny on our part of departmental spending limits."
#uk-treasury #office-for-budget-responsibility #government-oversight #fiscal-policy #economic-forecasting
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