Chancellor Rachel Reeves is being urged to "scrap the OBR" to save the UK economy from a "never-ending doom loop of debt and austerity" for years to come.
Created by former Chancellor George Osbourne in 2010, the Office for Budget Responsibility (OBR) acts an independent watchdog, providing fiscal forecasts.
Critics of the body claim it has left consecutive Governments "shackled" between raising taxes and cutting spending to meet strict fiscal rules, contributing to austerity.
The New Economic Foundation (NEF) is calling on the Chancellor to overhaul the status quo in favour of a Office for Fiscal Responsibility (OFT), with the new body and Treasury being responsible for producing economic forecasts on the impact of Government financial decision-making.
Rachel Reeves called to scrap the OBR
|GETTY / OBR graph
If this were to be implemented, Chancellors would not be accountable to one single forecaster, which the think tank has accused of enjoying "little democratic scrutiny".
NEF economist Dominic Caddick, who authored a report supporting the proposal, noted the current arrangement between the Treasury and OBR is an "effective veto on fiscal policy decisions".
This intervention comes ahead of Rachel Reeves's Autumn Budget with the Chancellor being under pressure to plug a £40billion "black hole" in the public finances.
Changes to the OBR's modelling projections for the economy could potentially wipe out significant fiscal headroom for the Chancellor, with the next forecast expected in Autumn.
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OBR's fiscal outlook March 2025 - 'at a glance' | OBRUnder the NEF's recommended new framework, the new body will still audit Government fiscal policy but the Treasury should also work on its own estimates.
If there are any discrepancies between the two, a new fiscal policy committee of nine economists would come to a conclusion on whether to side with the Government or the OFT on specific issues.
According to the think tank, this additional body will be useful in ensuring the Government does not ignore all independent advice over its policy decisions.
The NEF cited that the OBR's model has previously assumed public investment will mostly "crowd out" that of the private sector and health/benefits expenditure do not deliver economic benefit; which are hotly contested views.
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Mr Craddick explained: "Our fiscal framework guarantees the UK economy is in a never-ending doom loop of rising debt and austerity proposed to fix it.
"As long as the OBR remains the arbiter of fiscal policy decisions, we expect it will remain under attack. The proposal is to ensure it is replaced with something that provides the government with scrutiny, improving accountability and transparency, rather than completely evading it."
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Gov spending on welfare | OBRAccording to the OBR's "Fiscal Risks and Sustainability Report, which was published on July 8 2025, the UK remains in a “relatively vulnerable position",
The independent watchdog warned that borrowing is more than peer advanced economies and carrying debt close to levels not seen since the 1960.
GB News has contacted the Treasury for comment.