[UK] Lawmakers say forecasts must accompany mini-budget

A committee of lawmakers says the UK’s new finance minister Kwasi Kwarteng should publish economic and fiscal forecasts from the independent budget watchdog if he announces tax changes in his upcoming fiscal update to parliament, Reuters reports.

Mr Kwarteng is set to outline plans to help households and businesses manage the coming months under the economic agenda of new Prime Minister Liz Truss.

Investors want details about the vast cost of the plans, estimates for which reportedly range between 100 billion and 200 billion pounds ($115-230 billion).

However, the government confirmed on September 20 that the Office for Budget Responsibility will not be producing forecasts for tomorrow’s update.

"These forecasts are a vital indicator of the health of the nation's finances, and provide reassurance and confidence to international markets and investors," Mel Stride - chair of the Treasury Committee which scrutinises the government's economic plans - said.

Mr Stride was a leading supporter of former finance minister Rishi Sunak in the Conservative Party contest to succeed Boris Johnson. He said the economic outlook had soured since the OBR last published forecasts 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," Mr Stride said.

"Under these circumstances, it is vital that an independent OBR forecast is provided."

During the leadership contest, Mr Sunak reportedly said Ms Truss's unfunded tax cuts would be inflationary, while Ms Truss said the former chancellor's increased payroll taxes and plan to raise corporation tax would make a recession more likely.

A spokeswoman for Ms Truss said providing OBR forecasts in time for the September 23 update would have compromised their quality and completeness since it takes around 10 weeks to compile detailed projections.

"But we remain committed to maintaining the usual two forecasts in this fiscal year," the spokeswoman said.

In August, the OBR said it could provide a partial forecast to go alongside a late September fiscal statement, in addition to the full forecast that will be published with an annual budget due before the end of the year.

Source: Reuters

(Quotes via original reporting)

A committee of lawmakers says the UK’s new finance minister Kwasi Kwarteng should publish economic and fiscal forecasts from the independent budget watchdog if he announces tax changes in his upcoming fiscal update to parliament, Reuters reports.

Mr Kwarteng is set to outline plans to help households and businesses manage the coming months under the economic agenda of new Prime Minister Liz Truss.

Investors want details about the vast cost of the plans, estimates for which reportedly range between 100 billion and 200 billion pounds ($115-230 billion).

However, the government confirmed on September 20 that the Office for Budget Responsibility will not be producing forecasts for tomorrow’s update.

"These forecasts are a vital indicator of the health of the nation's finances, and provide reassurance and confidence to international markets and investors," Mel Stride - chair of the Treasury Committee which scrutinises the government's economic plans - said.

Mr Stride was a leading supporter of former finance minister Rishi Sunak in the Conservative Party contest to succeed Boris Johnson. He said the economic outlook had soured since the OBR last published forecasts 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," Mr Stride said.

"Under these circumstances, it is vital that an independent OBR forecast is provided."

During the leadership contest, Mr Sunak reportedly said Ms Truss's unfunded tax cuts would be inflationary, while Ms Truss said the former chancellor's increased payroll taxes and plan to raise corporation tax would make a recession more likely.

A spokeswoman for Ms Truss said providing OBR forecasts in time for the September 23 update would have compromised their quality and completeness since it takes around 10 weeks to compile detailed projections.

"But we remain committed to maintaining the usual two forecasts in this fiscal year," the spokeswoman said.

In August, the OBR said it could provide a partial forecast to go alongside a late September fiscal statement, in addition to the full forecast that will be published with an annual budget due before the end of the year.

Source: Reuters

(Quotes via original reporting)