Second Reading

In a statement to the House of Commons, a minister from the new Labour Government outlined their commitment to economic stability and fiscal responsibility. The minister began by congratulating the Deputy Speaker and noted that this was their first appearance at the Dispatch Box as a minister in the new government. The minister stated that the British people had voted for change in the recent general election, and the new government was immediately working to deliver on that mandate. Achieving sustained economic growth and improving the living standards of the British people were identified as the government's top priorities. The minister acknowledged the 14 years of Conservative failure and emphasized that this work was now the nation's urgent mission. To fulfill this mission, the minister explained that the government must fix the foundations of the economy and restore economic stability. This would involve meeting the commitment made by the Chancellor to work closely with the Office for Budget Responsibility (OBR) to ensure independent scrutiny of fiscally significant announcements. The minister criticized the previous Conservative government's approach, stating that they had made "huge unfunded fiscal commitments" without proper scrutiny, leading to the "calamitous mini-Budget of September 2022" and the resulting economic turmoil. In contrast, the new Labour Government pledged to always put the country first and party second, with an unwavering commitment to fiscal discipline and sound money. The minister then outlined the key provisions of the new Bill, which aims to strengthen the role of the OBR and ensure that significant fiscal policy decisions are accompanied by independent assessments. This includes requiring the Treasury to request OBR assessments before making any fiscally significant announcements, giving the OBR the power to independently produce assessments, and defining a clear threshold for what constitutes a "fiscally significant" measure. The minister also acknowledged the need for the government to respond quickly to emergencies, such as the COVID-19 pandemic, and explained that the Bill would not apply to temporary measures intended to address such situations. However, the government would still be required to provide transparency and justification for any emergency actions. Finally, the minister emphasized that the Bill includes safeguards to prevent future governments from ignoring the fiscal lock, such as the requirement to publish any updates to the charter in draft form before they are laid before Parliament.