Osborne offers Treasury committee veto over OBR chief
By Ian Dunt
George Osborne has offered the Treasury committee a veto over the incoming head of the Office for Budget Responsibility (OBR).
The new office, which was designed to provide economic forecasts which are entirely independent from government, has faced a sceptical reception from MPs and the media after it revised its unemployment forecasts.
Officials said it was merely a methodological change, but many critics suggested it raised concerns about the office’s independence from government.
“It’s a matter of regret for me that anyone is questioning the independence of the OBR,” Mr Osborne said.
The chancellor then said he would advertise for a new chairman of the OBR following the departure of Sir Alan Budd.
An advert would go up on the Treasury website and feature in the Economist magazine, but, in a surprise move which seems to have no parliamentary precedent, he also offered the committee the opportunity to veto the selection.
“Obviously it’s entirely up to you if you want to take up that offer,” Mr Osborne said.
“I want there to be no doubt this is an independent body. They will come here to give evidence.”
Mr Osborne also confirmed that he would follow Sir Alan’s recommendation that the office be located outside the Treasury.
But the chancellor was not given an easy ride by the committee.
Chairman Andrew Tyrie gave Mr Osborne a tough cross-examination, suggesting the Budget had not been as progressive as he had claimed.
