25
Acknowledged
We suggest that by the next fiscal event the Treasury clarifies its relationship with the...
Recommendation
We suggest that by the next fiscal event the Treasury clarifies its relationship with the OBR, in particular what the process is for declaring a Treasury announcement to be a fiscal event requiring an OBR economic and fiscal forecast.
Government Response Summary
The government acknowledged the recommendation, describing the existing independent role of the OBR in forecasting and their joint macroeconomic model, but did not commit to new clarification on the process for declaring a fiscal event.
Paragraph Reference
177
Government Response
Acknowledged
Government Response
Acknowledged
HM Government
Acknowledged
Finally, on your recommendation on the Treasury’s relationship with the OBR and its role in macro-forecasting, the OBR produces independent forecasts for the Government. The Treasury does not produce forecasts for the economy or public finances. The Treasury and the OBR jointly maintain and develop a large-scale macroeconomic model, and the arrangements are set out in a Memorandum of Understanding. Beyond this, policy advice to Ministers covers the economic context, including the sectoral and regional dimensions, and draws on official ONS data and official forecasts (by the Bank of England and OBR), as well as external forecasts, to give Ministers a sense of the possible range of impact of the policy measures being considered. In looking at the economic impact on particular sectors, we draw on information provided by the relevant departments.
Source
Committee
Treasury Committee
Inquiry
Economic impact of coronavirus
Report
Eighth Report: Economic impact of coronavirus: the challenges of recovery
11 Sep 2020
HC 271
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.9 yrs
Report published
11 Sep 2020