Former Chancellor Jeremy Hunt has expressed significant concerns regarding the Office for Budget Responsibility (OBR)’s decision to release its review findings this Wednesday. In an interview, Hunt highlighted that the OBR’s report will detail the £22 billion “black hole” that Labour claims it inherited, following Rachel Reeves’ budget presentation.
This forthcoming review, according to Hunt, will provide insights into how the OBR prepared its forecast for departmental spending in its last economic and fiscal outlook, which was released during the March budget. Specifically, it aims to determine whether the information and assurances provided by the Treasury regarding departmental expenditure limits were sufficient ahead of the Conservatives’ final budget before the general election.
Hunt, who previously dismissed the £22 billion shortfall as “nonsense,” voiced his frustration that he had not been consulted about the review, despite serving as Chancellor until early July. “Given that this pertains to my time as Chancellor, I would have expected to be fully engaged throughout the review and have the opportunity to respond to any criticisms,” he stated in a letter to OBR Chief Richard Hughes.
He further argued that the OBR’s planned publication on budget day raises questions about its commitment to political impartiality. Hunt noted that he was troubled by how the report was announced on July 29, coinciding with a politically charged statement from the Chancellor in the House of Commons, leading to the impression that the OBR had already prejudged the outcomes.
In response, Hughes clarified that the OBR’s findings focus exclusively on its institutional relationship with the Treasury and do not disclose any advice given to ministers or comment on their conduct. He also pointed out that the OBR will not share the review’s contents with the opposition ahead of its publication, citing concerns about potential market sensitivity surrounding some of the information.
As for Reeves, she is anticipated to attribute any spending cuts and tax hikes in the upcoming budget to the necessity of addressing this “black hole,” having already eliminated the winter fuel allowance for wealthier pensioners in an effort to bridge the gap.
