The chair of Britain’s economic watchdog resigned on Monday after the agency incorrectly published economic and fiscal forecasts ahead of last week’s autumn budget.
The Office for Budget Responsibility (OBR) released its economic and fiscal outlook for the Budget last Wednesday, about 40 minutes before Chancellor of the Exchequer Rachel Reeves was scheduled to begin presenting the Budget, sending UK government bond yields into a seesaw.
Richard Hughes, who took over as OBR chairman in October 2020, tendered his resignation after the market closed on Monday.
In a letter to Reeves and Dame Meg Hillier MP, chair of Parliament’s finance select committee, Mr Hughes said: “The premature publication of the Economic and Fiscal Outlook on 26 November was a technical but significant error.”
The OBR will submit a report to the Treasury and the House of Commons Finance Committee detailing how and why the early release occurred and “identify what future steps the Office will take to ensure this never happens again,” the letter said.
Hughes wrote that “it is in the best interest of the OBR for me to resign” so that the organization can “move swiftly forward from this unfortunate incident.”
He added: “I am confident that by implementing the recommendations in this report, the OBR can quickly regain and restore the trust and reputation it has earned through 15 years of rigorous, independent economic analysis.”
This is a developing story. Please check back for the latest information.
