Thinktanks Press Reeves to Overhaul OBR

0:00On March 1, a group of think tanks is pressing Chancellor Rachel Reeves to overhaul the office for budget responsibility ahead of her spring forecast. On Tuesday, they argue the agency, set up in 2010, uses outdated methods that block long-term public investment and fuel short-term decisions. Reeves is set to highlight early signs of economic recovery and progress on fiscal stability in her update. This push comes as Prime Minister Kier Starmer's Labor Party faces heat after losing a bi-election to the Greens last Thursday. The coalition spans left and right-leading groups, including progress, the new economics foundation, and commonwealth. They say the current set up leads to instability and ignores big picture opportunities like better housing or transport. Critics compare the OBR to a backseat driver with old maps, forcing knee-jerk reactions to minor forecast shifts. Economists point out it often overlooks the future pay-offs from government spending, like a healthier workforce.

1:01Last week, the Institute for Fiscal Studies also called for changes to the fiscal rules. Reeves has already tweaked things, shifting OBR reviews to once a year at the autumn budget and easing borrowing rules for investment. But somewhere she's still too cautious on taxes and spending. Former OBR leaders recently warned that governments tend to overspend amid bad surprises. As Reeves prepares her forecast, this debate underscores the tension between fiscal caution and bold investment in Britain's future. Outro