Labour to put plans for strengthened OBR to Commons vote
Shadow chancellor Rachel Reeves said the plan would ‘prevent a repeat of Liz Truss’ disastrous mini-budget’.
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.Labour is set to put its plans to strengthen the budget watchdog to a vote in Parliament in an effort to “prevent a repeat of Liz Truss’s disastrous mini-budget”, Rachel Reeves has said.
The measure would “bring security back to our economy” and stave off a re-run of “last year’s chaos”, according to the shadow chancellor.
She said if Prime Minister Rishi Sunak does not support the proposal, he will prove that he represents the “biggest risk” to the economy.
This will bring security back to our economy and prevent a re-run of last year’s chaos
Labour will force a vote on Tuesday on an amendment it will table to the King’s Speech, criticising the Government for failing to introduce legislation to stop a repeat of the economic fallout from Ms Truss and her chancellor Kwasi Kwarteng’s £45 billion spree of unfunded tax cuts.
One of the reasons the markets were so spooked by their mini-budget was that the pair refused to publish the Office for Budget Responsibility’s (OBR) independent forecasts for the public finances alongside the plans.
Labour wants to amend the rules so the OBR would be able to independently publish the impact of any major fiscal event making permanent tax and spending changes.
The plans would allow for changes to be introduced without forecasts in the case of an emergency, but the OBR would be allowed to set a date to publish its work.
In an article in the Observer, Ms Reeves wrote: “A future Labour government will strengthen the Office for Budget Responsibility so any administration making significant, permanent tax and spending changes will be subject to an independent forecast of its impact.
“This will bring security back to our economy and prevent a re-run of last year’s chaos.
“Next week Labour will put those plans to a vote in Parliament. If Sunak wants to put country first, then he will show the strength to stand up to those in his party that crashed the economy and vote with us.
“If not, he will prove that all he can offer is more of the same and that the biggest risk to the economy is another five more years of the Conservatives.”