Rachel Reeves says Treasury watchdog WON’T examine she is balancing the books within the Spring… and can she even face MPs to defend her insurance policies?
The Treasury watchdog will not check that Rachel Reeves is balancing the books this Spring.
The Chancellor has announced that the Office for Budget Responsibility will produce an economic forecast on March 3.
Under the law that established the independent body it must produce two such assessments every year.
But after the chaos surrounding her November Budget, the independent body has been told not to deliver a formal verdict on whether the government is meeting its own rules.
That could spare Ms Reeves from having to drum up more revenue if the economy performs worse than hoped, although the figures will show in theory whether she needs to.
A statement laid before Parliament today also leaves open the possibility that Ms Reeves might not respond to the OBR forecast in the Commons herself – or that she could do a written response. The forecast is due to be made on a Tuesday, while fiscal statements are typically on Wednesdays.
Rachel Reeves has announced that the Office for Budget Responsibility will produce an economic forecast on March 3
In her statement to MPs today, Ms Reeves set the date of March 3.
‘This forecast, in addition to the forecast that was published in November 2025, will fulfil the obligation required by the Budget Responsibility and National Audit Act 2011 for the OBR to produce at least two forecasts in a financial year,’ she said.
‘As set out at the Budget, the Spring forecast will not make an assessment of the government’s performance against the fiscal mandate and will provide an interim update on the economy and public finances.
‘The government intends to respond to this with a statement to Parliament. This is in line with my commitment to deliver one major fiscal event a year at the Budget.
‘This approach gives families and businesses the stability and certainty they need and, in turn, to support the government’s growth mission.’
Ms Reeves ‘cast-iron’ rules state that the government’s current budget must be in surplus in 2029-30.
The second rule says that public sector net financial liabilities (PSNFL) should be falling as a percentage of GDP between 2028-29 and 2029-30.
