Union calls for robust review of OBR over fears it holds back economic growth
Guardian AU Business
β’Sat, 08 Aug 2026 06:00:38 GMT
π° What Happened
The TUC, the UK's main union umbrella body, is urging the new chancellor John Healey to order a 'root and branch' review of the Office for Budget Responsibility (OBR). It claims the fiscal watchdog holds back economic growth and investment by downplaying the benefits of public investment and assuming it 'crowds out' private capital, an assumption disputed by some economists. The TUC wants Healey to revisit the issue in his first budget on 28 October.
π The Backstory
The OBR is the independent body that forecasts UK public finances and audits government spending plans, and its assessments strongly influence budgets. Critics, including thinktanks, argue its models still bake in austerity-era assumptions. Public investment schemes like Crossrail are cited as examples whose benefits the OBR underplays.
π― Why It Matters
The OBR's forecasts directly shape UK tax and spending decisions, including on public investment. For readers, the debate matters because it affects whether major infrastructure and public projects get funded, and ultimately economic growth and public services.
The TUC, the UK's main union umbrella body, is urging the new chancellor John Healey to order a 'root and branch' review of the Office for Budget Responsibility (OBR). It claims the fiscal watchdog holds back economic growth and investment by downplaying the benefits of public investment and assuming it 'crowds out' private capital, an assumption disputed by some economists. The TUC wants Healey to revisit the issue in his first budget on 28 October.
The OBR is the independent body that forecasts UK public finances and audits government spending plans, and its assessments strongly influence budgets. Critics, including thinktanks, argue its models still bake in austerity-era assumptions. Public investment schemes like Crossrail are cited as examples whose benefits the OBR underplays.
The OBR's forecasts directly shape UK tax and spending decisions, including on public investment. For readers, the debate matters because it affects whether major infrastructure and public projects get funded, and ultimately economic growth and public services.