Liz Truss has been challenged to open up to scrutiny of her future emergency tax cuts and spending plans if she becomes Prime Minister and takes immediate action to tackle the cost of living crisis.
The Office of Budget Responsibility (OBR), which creates its own forecasts based on the government’s major financial announcements, said preparatory work had been underway for about a month to release new economic forecasts in September. I made it
Richard Hughes, chairman of the government’s economic oversight board, said the analysis could be released on legally required standards on Sept. 14 or 21 if requested by the new prime minister.
The move means she has to decline putting the ball on Truss’ court and asking OBR to conduct its own analysis.
The head of the Treasury Task Force, Mel Stride, said it was important for the incoming prime minister to commit to doing so, but Labour said Mr Truss would “try to escape proper scrutiny”. “There is no excuse,” he said.
OBR typically receives notice 10 weeks in advance of any major financial event or budget to begin preparations.
But the new Conservative leader, who was announced on 5 September and is set to take office a day later, will be forced to react quickly to a worsening economic outlook as energy prices soar after the price cap hike. will
The Financial Times reported that Truss downgraded an emergency budget scheduled for mid-September to a smaller fiscal event to bring tax cuts and set her broader economic outlook. You don’t need a perfect OBR prediction for the state of
But with inflation skyrocketing and the average household energy bill cap rising by as much as 80%, some experts believe that her likely prime minister, Kwasi Kwarten, will receive a new loan from OBR. Without information, I fear that they will make decisions based on outdated advice.
Stride, a Tory MP endorsing Rishi Sunak in a leadership contest, asked OBR to ensure they provide an independent analysis of upcoming emergency budget or emergency financial events.
Although he welcomed confirmation that he was prepared to do so, he pressured the truss to commit to demanding an analysis, saying the forecast would encourage parliamentarians and international markets to “give transparency about the country’s fiscal health.” will provide,” he said.
Labor Shadow Treasury Secretary Pat McFadden said: “There is no excuse for the next Conservative prime minister to avoid proper scrutiny before announcing cost of living measures this September.”
He argued that Truss and Snak were “playing fantasy economics” while Labor “faced this crisis and ensured that no one paid a cent for energy while securing the economy for the future.” I have a plan,” he added.
The Truss campaign has been contacted for comment.
