A coalition of thinktanks has called on Chancellor Rachel Reeves to reform the Office for Budget Responsibility (OBR) to enable greater public investment. The group, which includes the Labour-aligned Progress, the New Economics Foundation, Common Wealth, and the Women's Budget Group, argues that the current fiscal framework contributes to instability and short-termist underinvestment.
In a statement ahead of the spring forecast on Tuesday, the thinktanks said: 'It has become increasingly clear that our current framework is contributing to instability, short-termist underinvestment and a lack of focus on long-term risks and opportunities.' They urged Reeves to review the watchdog's remit.
Louisa Dollimore, director of strategy at the Good Growth Foundation which convened the group, described the OBR as 'a backseat driver with out-of-date maps', obstructing long-term planning when Britain needs it most. Hannah Peaker, deputy chief executive of the New Economics Foundation, added that the current system leads to 'kneejerk policy changes of huge consequence' due to small changes in uncertain forecasts.
The call follows criticism that the OBR fails to account for the long-term benefits of investment, leading to hasty decisions such as £5bn in welfare cuts last year. Reeves has already moved to limit the OBR's fiscal rule assessments to once a year, but the thinktanks want further reform. Adam Langleben, executive director of Progress, said the OBR was 'created for an era defined by austerity' and often misses long-term value, urging that its judgments 'should guide decisions, not shut down ambition.'
