The Budget Responsibility Bill

19th July 2024

The Government has introduced to Parliament the Budget Responsibility Bill and published a draft update to related provisions of the Charter for Budget Responsibility.

The Bill would amend the 2011 Budget Responsibility and National Audit Act and require any fiscally significant measures announced by the Government to be accompanied by an independent assessment by the OBR, except in certain circumstances.

On 18 July, the Chancellor wrote to the Chair of the OBR to inform him of the new legislation..

The failure by ex prime minister Liz Truss to do this led to her disastrous budget that shocked the markets, lowered the value of the pound and hit living standards as interest rates went up. From now on government should be told the results of any proposals before they enact them.