[Co-authored with Richard Berry] The Office for Budget Responsibility (OBR) was established to help ensure the government’s fiscal and economic forecasts are credible and transparent. The key innovation designed to achieve this objective was that the OBR would be independent of the Treasury, and therefore outside direct ministerial control. When Robert Chote was appointed as the second Chair of the OBR in 2010 – an appointment approved by Parliament – it appeared to confirm that the agency would be genuinely independent. Indeed, there is no reason to doubt the impartiality of the OBR’s analysis. The idea that the OBR acts with complete autonomy, however, is highly questionable – it remains a very small organisation, integrated almost seamlessly with the Treasury apparatus. Three years after its creation, claims about its political and operational independence still require investigation.
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Image: Howard Lake