If elected, Labour will introduce law that ensures every major tax decision is analysed by the OBR
Labour has pledged to change the law so every big tax and spend decision is analysed by Britain’s fiscal watchdog to avoid repeats of Liz Truss’s “disastrous mistakes”.
Rachel Reeves the shadow chancellor said her party would bring forward new legislation to guarantee any major changes are scrutinised by the Office for Budget Responsibility (OBR).
It comes a year after Ms Truss spooked the markets with her tax-cutting mini-budget, having refused to publish OBR forecasts alongside her plans.
Ms Reeves said Labour would introduce a “fiscal lock” whereby ministers would be legally bound to consult the watchdog on permanent tax and spending reforms above a certain threshold.