The Treasury watchdog has brought forward its report on Kwasi Kwarteng’s backfiring budget to next week, following an emergency meeting at No 10.
The Office for Budget Responsibility (OBR) was barred from assessing last week’s tax-slashing package – which has triggered a financial and political crisis.
Following the meeting, the OBR said it will deliver “an initial forecast” next Friday on “economic and fiscal prospects and the impact of the government’s policies”.
The announcement appeared to be a climbdown by Mr Kwarteng, the under-fire chancellor, who refused to allow the OBR to scrutinise his plans to cut taxes by £45bn and pile the cost onto government borrowing.
The gamble spooked the financial markets and created a “material risk” to the UK economy, the Bank of England said – as it was forced to unveil a £65bn rescue package.
Mr Kwarteng announced he would set out his plans to get a grip on borrowing and debt on 23 November, a two-month delay that alarmed investors further.
In a statement, the OBR said: “We discussed the economic and fiscal outlook, and the forecast we are preparing for the chancellor’s medium-term fiscal plan.
“We will deliver the first iteration of that forecast to the chancellor on Friday October 7 and will set out the full timetable up to November 23 next week.
“The forecast will, as always, be based on our independent judgment about economic and fiscal prospects, and the impact of the government’s policies.”
A Treasury readout made no mention of the forecast to come next Friday – instead pointing to having “discussed the process for the upcoming economic and fiscal forecast, which will be published on 23 November.
“The prime minister and chancellor reaffirmed their commitment to the independent OBR and made clear that they value its scrutiny,” it said.
