Rachel Reeves to introduce 'fiscal lock' law to strengthen OBR powers

To deliver economic stability

Chancellor Rachel Reeves will introduce a 'fiscal lock' law to ensure any government budget decisions can no longer bypass scrutiny by the Office for Budget Responsibility (OBR).

The new law will enable the OBR to conduct an independent assessment of any significant, permanent tax and spending changes as a measure of 'fiscal lock'. The law also targets announcements over one financial year which make permanent tax or spending commitments above 1% of the UK's GDP, or roughly £30bn. However, emergency and temporary measures lasting up to two years will be exempt from an OBR assessment. This includes examples of prior events, such as the government's response to the Covid-19 pandemic. Labour majority not enough to make UK preferred market over US The plans ...