Overview

The Budget Responsibility Bill aims to enhance transparency and accountability in the UK government's fiscal announcements. It mandates that the Treasury consult the Office for Budget Responsibility (OBR) before announcing fiscally significant measures, ensuring independent assessment before public announcements.

Description

This bill amends the Budget Responsibility and National Audit Act 2011. Key changes include:

• Mandatory OBR Consultation: Before a Minister announces a fiscally significant measure (or a combination of measures exceeding a specified threshold of GDP), the Treasury must request a report from the OBR.
• OBR's Independent Assessment: If the Treasury fails to request a report on a fiscally significant measure and the OBR deems it significant, the OBR is obliged to inform the Treasury Committee and prepare a costing report.
• Definition of "Fiscally Significant": A measure or combination of measures is considered "fiscally significant" if its cost exceeds a percentage of the gross domestic product (GDP), as specified in the Charter for Budget Responsibility.
• Exemptions: The requirement for OBR consultation does not apply to temporary measures implemented in response to emergencies.
• Charter Amendments: The Charter for Budget Responsibility can be amended to clarify terms and definitions within the bill. Any proposed modifications must be published for 28 days before parliamentary review.

Government Spending

The bill itself does not directly involve significant government spending. Its impact on spending lies in enhancing the scrutiny and costing of future government policy announcements, potentially leading to more fiscally responsible decisions and increased transparency.

Groups Affected

• The Treasury: Increased responsibilities in consulting with the OBR before making fiscal announcements.
• The Office for Budget Responsibility (OBR): New duties to provide reports on fiscally significant measures.
• The Treasury Committee: Receives notification from the OBR regarding any un-reported fiscally significant measures.
• The Public: Benefits from increased transparency and accountability in government financial decisions.
• Parliament: Enhanced oversight of government fiscal policy through the OBR's independent assessments.

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