UK Treasury Committee Rejects Reforms to Budget Office

The Treasury Select Committee of the UK Parliament rejected calls for the fundamental reform of the Office for Budget Responsibility (OBR), stating that critics of the independent forecaster are "shooting the messenger."

Committee chair Dame Meg Hillier defended the OBR against claims of overreach, arguing that its forecasts become more critical when government spending operates on thin margins. While maintaining the OBR's independence, the committee recommended that ministers implement a 10-year economic forecast to supplement existing five- and 50-year reports. The committee also suggested that Parliament dedicate specific time to debate the OBR's annual fiscal risks and sustainability report.

The review follows the December 2025 resignation of OBR chair Richard Hughes after a budget assessment leak. During the proceedings, some economists testified that the OBR has evolved into a body that dictates permissible fiscal policy without a democratic mandate, claiming its headroom figures have become a binding constraint on government policy.