Trust but Verify: OBR's New Approach After Forecaster Errors

Britain's Office for Budget Responsibility (OBR) has adopted a 'trust but verify' approach towards the finance ministry after inaccuracies in spending forecasts under the last Conservative government. Errors in March's budget led New Labour finance minister Rachel Reeves to manage a substantial fiscal gap. Greater transparency is now demanded.

The Office for Budget Responsibility in Britain has adjusted its oversight strategy, signaling a shift towards a 'trust but verify' stance after incorrect spending forecasts were presented ahead of March's budget statement by the previous Conservative government.

Chair Richard Hughes informed the Treasury Committee that this adjustment aims to prevent future oversight failures like those witnessed in March.

New Labour finance minister, Rachel Reeves, tackled a fiscal deficit, arguing against Conservative claims. The OBR pinpoints lack of transparency from finance officials as a central issue and calls for a more detailed breakdown in future forecasting.

(With inputs from agencies.)