An influential cross-party group of lawmakers has said the chancellor should lay out his next “financial program” and economic forecast from his mini-budget after the market plunged.
The Treasury select committee, headed by an influential Tory MP, said Mr Quarteng should reveal his medium-term financial plan at the end of October, and not on November 23 as is currently planned.
The Office for Budget Responsibility was not asked to submit its general forecast in the mini-budget last Friday, but it will for the November event.
It is not acceptable that the (MPC) should be expected to take this major decision without OBR forecast, when we know it can be provided before they meet
Experts said the market fall in recent days was partly due to lack of forecast from OBR. The committee had asked to make predictions.
In a letter to the committee, the OBR said it would submit its preliminary forecast to the Chancellor on October 7 and that the full forecast could be ready weeks later.
The MPs said: “The Committee argues that the fiscal event and the OBR forecast planned for 23 November should be brought forward in view of the ‘continued uncertainty within the markets’, that this would benefit a crucial meeting of the Monetary Policy Committee on 3 November. and because a meaningful OBR forecast can be provided earlier.”
Committee chairman Mel Stride said it was “important” that economic analysis be brought forward.
“There is an urgent need to boost market confidence that HM Treasury Quasi Quarteng’s financial plans have piled up,” the Conservative MP tweeted.
“It is important that the OBR forecast and the Chancellor’s statement be brought forward to conclude on or before October.
“An important point is also that the Monetary Policy Committee of the Bank of England (which sets interest rates) meets on 3 November to decide on the next steps in the base rate which will affect millions of people.
“It is not acceptable that they should be expected to make this major decision without an OBR forecast when we know it can be provided before they get it.”
Credit: www.standard.co.uk /