Overview

The Budget Responsibility and National Audit Bill [HL] aims to improve the UK's fiscal management and strengthen the national audit process. It establishes a new Office for Budget Responsibility (OBR) to independently assess public finances and reforms the National Audit Office (NAO), creating a new corporate body.

Description

Budget Responsibility

The bill creates a Charter for Budget Responsibility, setting out the Treasury's fiscal policy objectives, its mandate for achieving them, and requirements for annual budget reports. It establishes the OBR, responsible for independent economic and fiscal forecasts, assessments of the fiscal mandate, and analysis of public finance sustainability. The OBR will have access to government information and will be required to operate objectively, transparently, and impartially.

National Audit

The bill reforms the NAO, establishing it as a corporate body with a board including the Comptroller and Auditor General (CAG) as chief executive and non-executive members. It clarifies the CAG's independence from the Crown and sets out their powers and duties, emphasizing efficiency and adherence to professional standards. The NAO's expenditure will be subject to parliamentary scrutiny.

Auditor General for Wales

The bill amends the Government of Wales Act 2006, granting the National Assembly for Wales greater control over the Auditor General for Wales's appointment, terms, and functions.

Government Spending

The bill's impact on government spending is not explicitly quantified in the provided text. However, it is likely to involve some additional expenditure for establishing and operating the OBR and the reformed NAO. The bill also provides for indemnification from the Consolidated Fund for certain liabilities of the CAG and NAO.

Groups Affected

• Treasury: Responsible for preparing the Charter for Budget Responsibility and publishing budget reports.
• Office for Budget Responsibility (OBR): New body responsible for independent assessment of public finances.
• Comptroller and Auditor General (CAG): Role clarified, with enhanced independence and responsibilities.
• National Audit Office (NAO): Reformed into a corporate body with a new governance structure.
• Parliament: Increased scrutiny of budget plans and the NAO's activities.
• National Assembly for Wales: Greater control over the Auditor General for Wales.
• Public: Access to more transparent and independent reporting on public finances.

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