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TUC urges chancellor to order a root and branch OBR review
The union says the OBR assumes public investment crowds out private capital and is calling for the reassessment to feed into the chancellor’s 28 October budget.
The UK trade union umbrella TUC is urging the new chancellor, John Healey, to commission a “root and branch” review of the Office for Budget Responsibility, arguing the watchdog’s modeling approach discourages public investment and broader economic growth.
In particular, the TUC says the OBR downplays the benefits of public investment schemes by assuming it “crowds out” private capital, a premise the union says is disputed by some economists.
The TUC wants Healey to use his first budget on 28 October to re-examine the OBR’s assessments. It also points to broader calls from thinktanks and campaign groups to restructure the independent forecaster.
The article notes that Healey’s predecessor, Rachel Reeves, has tapped economics professor Jonathan Haskel to chair the OBR, following the resignation of Richard Hughes in December after the OBR inadvertently published details of the budget in advance. Haskel, a former member of the Bank of England’s monetary policy committee, is expected to oversee a new economic forecast to inform the budget.