Overview

The Budget Responsibility Bill amends the Budget Responsibility and National Audit Act 2011, placing new duties on the Treasury and the Office for Budget Responsibility (OBR) regarding the announcement of fiscally significant measures. It aims to ensure greater transparency and scrutiny of government spending plans.

Description

The bill mandates that the Treasury must request a report from the OBR before announcing any fiscally significant measures to Parliament. A measure is deemed "fiscally significant" if its cost exceeds a specified percentage of the UK's gross domestic product (GDP), as defined in the Charter for Budget Responsibility. This threshold is not specified in the Bill itself. The OBR must then produce a report costing the measure(s). If the Treasury fails to make this request for a fiscally significant measure, and the OBR considers it significant, the OBR must notify the Treasury Committee and produce a cost report. Exceptions exist for temporary measures responding to emergencies. The bill also includes provisions for the Treasury to amend the Charter for Budget Responsibility to clarify these definitions and processes, with a 28-day public consultation period required for these amendments.

Government Spending

The bill itself does not directly impact government spending. Instead, it aims to improve the transparency and oversight of government spending decisions by requiring detailed costings and assessments from the OBR before significant fiscal announcements are made.

Groups Affected

• The Treasury: Takes on a new obligation to consult the OBR before making significant fiscal announcements.
• The Office for Budget Responsibility (OBR): Given increased responsibilities to prepare and provide reports on the fiscal significance of government measures.
• The Treasury Committee: Will receive notification from the OBR if the Treasury fails to consult them before making a fiscally significant announcement.
• The Public: May benefit from increased transparency and scrutiny of government spending decisions.
• Parliament: Will have access to more detailed costings before debating and voting on significant fiscal policies.

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