Overview

The Budget Responsibility and National Audit Bill aims to improve the UK's fiscal management and strengthen the National Audit Office (NAO). It establishes a new Office for Budget Responsibility (OBR) to provide independent economic forecasts and analysis, and reforms the NAO's governance and structure.

Description

Part 1: Budget Responsibility

This part creates the OBR, an independent body responsible for examining and reporting on the sustainability of public finances. The OBR will produce economic forecasts and assess the government's fiscal targets. A Charter for Budget Responsibility will set out the Treasury's objectives and the OBR's remit.

Part 2: National Audit

This part reforms the NAO, establishing it as a corporate body with a new governance structure including non-executive members. The Comptroller and Auditor General (CAG) remains the head of the NAO and continues as an officer of the House of Commons. The bill clarifies the CAG’s independence and strengthens their powers.

Part 3: Final Provisions

This part covers the commencement and extent of the Act, enabling the Treasury to make consequential amendments and orders.

Government Spending

The bill will lead to increased government spending on the OBR and changes to the NAO's funding. While precise figures are not provided in the bill text, the establishment of the OBR and the reform of the NAO will require additional funding.

Groups Affected

• The Treasury: Will be required to prepare a Charter for Budget Responsibility and work with the OBR.
• The Office for Budget Responsibility (OBR): Will be newly established, responsible for independent economic forecasting and analysis.
• The Comptroller and Auditor General (CAG): Role will be redefined within the new structure of the NAO.
• The National Audit Office (NAO): Will be restructured and operate as a corporate body with a new governance model.
• Parliament: Will receive reports from both the OBR and the NAO.
• The Public Accounts Commission: Will have a greater role in overseeing the NAO and the CAG's appointments.
• Auditor General for Wales: Will be affected by amendments to the Government of Wales Act 2006.

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