The OBR in politics stands for the Office for Budget Responsibility , a UK independent body that provides economic forecasts and analyzes public finances.

What the OBR Does

The OBR was created in May 2010 and made statutory in 2011 to provide independent economic forecasts and analysis of the UK's public finances. It examines and reports on the sustainability of public finances and provides economic forecasts during the UK Government's Budget and Spring Statements. The organization scrutinizes the government's tax policy costings, produces welfare spending reports, and assesses whether the government has a greater than 50 percent probability of meeting its fiscal targets.

Independence and Structure

The OBR operates as a non-departmental public body funded by the UK Treasury but maintains independence from the government. It is led by a three-member Budget Responsibility Committee appointed by the Chancellor of the Exchequer, with Richard Hughes serving as chair since October 2020. The organization must perform its duties objectively, transparently, and independently, though it is accountable to both Parliament and the Treasury Select Committee.

Political Significance

The OBR gained significant political prominence during the 2022 mini-budget crisis when Prime Minister Liz Truss's government notably did not request an OBR forecast before announcing large tax cuts. This decision was widely criticized and contributed to market instability that decreased the pound's value, ultimately leading to Truss's resignation after just 49 days in office. In September 2024, Parliament passed legislation giving the OBR powers to make judgments on any major taxation or spending announcements to provide stability.