UK Fiscal Watchdog Chair Resigns After Premature Budget Report Release
Richard Hughes, the esteemed head of the Office for Budget Responsibility (OBR), the UK's independent fiscal watchdog, has announced his resignation. This pivotal decision comes in the wake of a significant administrative misstep: the OBR's unexpected early publication of its critical economic and fiscal forecasts, which caused considerable disruption to the nation's recent Autumn Budget.
Disruption to the Autumn Budget
The incident occurred last Wednesday when the OBR's official assessment of the budget was made public roughly 40 minutes before Chancellor Rachel Reeves was due to commence her highly anticipated budget address. This premature release had immediate repercussions, triggering movements in financial markets and impacting gilt yields, raising concerns about the sanctity and timing of government financial disclosures.
Hughes' Rationale for Stepping Down
In a formal letter sent to Chancellor Reeves and Dame Meg Hillier, Chair of Parliament's Treasury Select Committee, Mr. Hughes candidly described the "inadvertent early dissemination" of the Economic and Fiscal Outlook on November 26th as a "technical but serious error." He emphasized that his resignation was deemed to be "in the best interest of the OBR," facilitating the organization's swift recovery and allowing it to "quickly move on from this regrettable incident."
Hughes, who took on the chairmanship of the OBR in October 2020, also confirmed that a comprehensive report detailing the circumstances and reasons behind the early release has been submitted to both the Treasury and the Treasury Committee. This report further outlines specific actions the OBR commits to taking to ensure such an event is never repeated.
Restoring Confidence and Independence
Concluding his statement, Hughes expressed strong conviction in the OBR's capacity to rebound. He asserted, "By implementing the recommendations in this report, I am certain the OBR can quickly regain and restore the confidence and esteem that it has earned through 15 years of rigorous, independent, economic analysis." His departure aims to underpin this process, reinforcing the OBR's dedication to its crucial role in providing impartial economic oversight for the UK.
