Kwasi Kwarteng refuses to let OBR release forecasts with mini-budget
Kwasi Kwarteng has refused to let a government watchdog assess the economic impact of planned tax cuts expected in a mini-budget on Friday.
Mel Stride, the Tory chair of the Treasury select committee, urged Kwarteng to allow independent forecasts for the public finances to be published alongside his mini-budget on Friday. Stride released a strongly worded statement urging more clarity around the effects of the new chancellor’s fiscal interventions.
The chancellor is expected to unveil tax cuts of £30bn to £50bn, according to some estimates, while the government’s intervention to freeze energy prices for consumers and businesses could cost more than £100bn. He is also expected to review his fiscal rules to allow the government to borrow more.
Stride, an ally of the former chancellor and defeated leadership contender Rishi Sunak, said independent forecasts from the Office for Budget Responsibility were necessary to “provide reassurance and confidence to international markets and investors”.
He said: “As a committee, we have in the past reported to the house that we consider it very important that significant changes to taxation are announced in a fiscal event alongside an OBR forecast. These forecasts are a vital indicator of the health of the nation’s finances, and provide reassurance and confidence to international markets and investors.
“There has been a deterioration in our economic outlook since the last OBR forecast in March. There have been significant fiscal interventions since then and we are told there will be further significant interventions including major permanent tax cuts to be announced on Friday. Under these circumstances, it is vital that an independent OBR forecast is provided.”
Richard Hughes, the chair of
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