Reforming the OBR so we can fix our economy
STATEMENT.
We, a coalition of policymakers, are in agreement that a proper conversation about our fiscal framework is long overdue - one that must begin with a simple question: can we do better?
A strong economy is founded in a secure fiscal framework - it anchors credibility in the system and strengthens public trust in economic institutions. The broad objectives of our framework – stability, meeting day-to-day costs with revenues, investing for growth, and achieving fiscal sustainability– are fundamental to a growing economy.
However, it has become increasingly clear that our current framework is contributing to instability, short-termist underinvestment and a lack of focus on long-term risks and opportunities. This impacts business and investor confidence, and undermines growth.
The Chancellor’s announcement of a move to one annual formal economic assessment is one we fully support. It will require the Charter of Budget Responsibility to be amended, and we believe now is the time to look beyond this and fully review our framework to establish an approach which supports the stability, discipline, sustainability and long-termism that matches our economic reality.
The solution is not about abandoning fiscal discipline or rules. It’s about building a pro-growth framework.
We all agree that, whilst the OBR is just one part of this conversation, this can start with reviewing the Office for Budget Responsibility’s (OBR) brief as discussions on the Charter continue. We’re united by a singular goal: any OBR reform should better match our economic reality. Whilst independent scrutiny of the public finances is vital, reform is required to the role and approach of the OBR in order to increase confidence in its effectiveness so we can begin a broader conversation on the framework at large.
In all, we need sensible measured reform which delivers a fiscal framework that embeds fiscal discipline, whilst matching our economic reality and supporting the long-term thinking, resilience, investment and drivers of growth that our economy needs.
SIGNATORIES
THINK TANKS
The Good Growth Foundation
Invest in Britain Campaign
ECONOMISTS
Prof Jonathan Portes
King’s College London
Prof Mariana Mazzucato
UCL Institute for Innovation and Public Purpose
Centre Think Tank
Common Wealth
New Economics Foundation
POLITICS
Lucy Atkinson
Labour First
Progress
Women’s Budget Group
About.
Fix the Framework is a coalition of think tanks, economists and campaigners who are fed up with short-termist politics.
Our statement is our foundation. All signatories agree to the principle of OBR reform. However, within our coalition, there are a variety of views and ideas about how this should and could be done. Fix the Framework Coalition provides the platform for these views to be shared. We are interested in practical and possible solutions to the challenges presented by the OBR. If you are interested in signing up, publishing your position or learning more, please do get in touch.
We are organised by The Good Growth Foundation, an independent progressive think tank dedicated to cracking the politics and policies of economic growth.
CONTACT US.
Interested in learning more? Or want to add your name to our signatories? Get in touch with us here and we will get back to you shortly.
