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Reform UK has indicated it would keep the Office for Budget Responsibility (OBR) intact if it wins the upcoming general election, moving away from earlier hints that the budget watchdog might be abolished. This shift was highlighted in a forthcoming statement by Robert Jenrick, the party’s newly appointed economic spokesman, who emphasized his support for both the OBR and the Bank of England’s independence in his first major speech on the party’s economic strategy.
Earlier this year, Reform UK leader Nigel Farage openly questioned the necessity of the OBR, accusing it of having an undue influence over elected officials by “effectively dictating to elected politicians what they should or should not do.” However, Jenrick’s address, scheduled to take place in London’s financial district, proposes reforming rather than scrapping the OBR. He acknowledges, “The OBR is far from perfect,” but stresses that its original purpose—to encourage fiscal discipline—is a goal Reform UK fully supports.
With Reform UK regularly topping national polls, there is heightened scrutiny of its economic policies. In recent months, Farage has softened the party’s earlier commitment to deliver £90 billion in annual tax cuts, in an attempt to bolster Reform UK’s financial credibility. Jenrick’s speech aims to convey a responsible approach to managing public funds, reassuring markets and businesses alike. The OBR’s role in independently evaluating the UK’s economic health and government spending plans lends it significant influence, which has drawn criticism from some within Reform UK as overly powerful. Deputy leader Richard Tice has notably described the watchdog as “literally telling the government how to run its policy.”
Despite these criticisms from within the party, Jenrick plans to affirm Reform UK’s willingness to be held accountable by the OBR. He intends to outline plans to diversify opinions within the body, introduce competitive recruitment for talented forecasters, and reform its operations while retaining its core function. Additionally, Jenrick will defend the Bank of England’s autonomy, though he intends to criticize it for losing focus on inflation control and pledging to remove what he describes as “distractions” like climate change objectives. Still, he maintains that keeping inflation low is crucial to controlling household costs.
The announcement of Jenrick as Reform UK’s prospective Chancellor came shortly after his departure from the Conservative Party, following accusations of plotting defection. His appointment has already sparked criticism from Labour and Conservative figures. Labour’s Dan Tomlinson condemned Jenrick for previously supporting former Prime Minister Liz Truss’s “disastrous mini-Budget.” Meanwhile, Conservative shadow chancellor Sir Mel Stride accused Reform UK of being inconsistent over the OBR, pointing to Farage’s previous statements about abolishing the watchdog as evidence of the party’s lack of clear direction.
The BBC has sought responses from both the Bank of England and the OBR regarding these developments
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