Considered in Committee

The Government's position, as outlined by the Chief Secretary to the Treasury Darren Jones, is that the Budget Responsibility Bill is a crucial first step to achieving sustained economic growth and stability. The Bill aims to prevent a repeat of the disastrous mini-Budget introduced by the previous Conservative government, which caused significant economic turmoil. The Bill will strengthen the role of the independent Office for Budget Responsibility (OBR) by legally requiring the Government to seek the OBR's assessment before making any fiscally significant announcements on tax and spending. This, the Government argues, will reinforce credibility and trust by preventing large-scale unfunded commitments that are not subject to independent scrutiny. In response, the official opposition, represented by Nigel Huddleston, acknowledged the importance of fiscal responsibility and transparency, but argued that the Bill does not go far enough. Huddleston proposed amendments that would require the OBR to produce a report on any changes to the Government's fiscal rules, which he believes are a crucial part of fiscal decision-making. The debate that followed saw a wide range of topics discussed, including the state of the economy inherited by the current Government, the impact of the previous Government's policies, and the role of the OBR and fiscal rules. Several new Members of Parliament made their maiden speeches, highlighting the challenges and opportunities facing their constituencies, from infrastructure and healthcare to community spirit and military heritage. The amendments proposed by the opposition and other parties, such as the Liberal Democrats and the Green Party, sought to broaden the scope of the OBR's remit, including by requiring it to consider the impact of fiscal measures on the UK's net zero targets and the management of contingent liabilities. However, the Government resisted these amendments, arguing that the Bill's focus should remain on preventing a repeat of the kind of reckless fiscal announcements seen under the previous administration. Overall, the debate reflected the importance of fiscal responsibility and the need to rebuild trust in the UK's economic management, while also highlighting the complexities and trade-offs involved in designing an effective framework for independent scrutiny of the Government's fiscal decisions.