Clarke may hive off forecast unit
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The Chancellor of the Exchequer, Kenneth Clarke, yesterday took the first steps towards contracting out the Treasury's economic forecasting to the private sector by announcing that he would shortly appoint consultants to study the feasibility of the idea.
The move threatens the jobs of up to 45 staff at the Treasury, but if the service is contracted out they will be allowed to mount an in-house bid in competition with private sector economic forecasters.
The idea of contracting out the forecasting function was floated in late 1994 in a Treasury review of its own expenditure which has since led to a sharp reduction in the number of civil servants.
But at the time Mr Clarke decided to delay the detailed review of the forecasting function for a couple of years.
The three-month consultants' study is to look at the feasibility of contracting out the central economic forecast and the forecasting and monitoring of public finances.
Other areas would include the background work required to produce the economic assumptions made in public expenditure planning, and the assessment of the accuracy of forecasts, by looking at what happens in the economy.
The Treasury said that if the consultants' report confirmed that a "market test" was feasible, a formal contract specification would be issued in late spring or early summer inviting outside organisations - and Treasury staff, if they wished - to make bids.
The aim would be to complete negotiations in time for the successful bidder to take over responsibility for forecasting from the end of this year.
The Treasury said the study would include the security implications of allowing an outside organisation to have access to sensitive forecasting information that is a key part of the Budget announcement.
It would also examine options such as moving the forecasting function entirely outside the Treasury or having civil servants working alongside a private firm.
Comment, page 15
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments