Truss and Kwarteng to meet fiscal watchdog today after MPs demand full economic forecast | Politics News

Liz Truss and Kwasi Kwarteng will meet the head of the UK’s independent financial watchdog today.

The negotiations with the Office of Budget Responsibility come after a week of economic uncertainty following last Friday’s small budget.

It is highly unusual for a Prime Minister to attend an OBR meeting – but the Treasury has denied that this is an emergency measure.

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Tory seniors blame small budget for chaos

The news comes hours after the Treasury Select Committee, made up of MPs from all parties, asked the prime minister to release the full economic forecast from the OBR by the end of October.

He is also being urged to move his medium-term budget from November 23.

Ms Truss and Mr Kwarteng said they remained committed to their policies – and suggested a £45bn tax cut package was the “right plan” for the economy.

No independent OBR forecast came with last week’s small budget – but the watchdog said it had prepared a draft for the new prime minister on his first day in office.

This lack of forecast has contributed to concerns in the City.

Mel Stride, Conservative chairman of the Treasury Select Committee, said in a letter to the Prime Minister that “it is difficult to draw conclusions beyond the lack of a forecast that has led to a lack of confidence in the market”. .

He added: “Some have formed the unfortunate impression that the government may be seeking to avoid scrutiny, possibly because the expectation that the OBR forecast is not supportive of achieving the economic outcomes that the government is seeking. Government expects from the Growth Plan, including a trend of 2.5% growth in the medium term.”

Mr Kwarteng has said the forecast will be published on 23 November – but after last Friday’s small budget caused economic uncertainty, the committee found that the prime minister would receive the OBR forecast originally on October 7th.

They asked him to publish “without delay” the initial economic and financial forecast that OBR provided him with when he started work a few weeks ago.

A reply from the prime minister has been requested no later than Monday.

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PM ‘sticks to growth plan’

Mr Stride also expressed frustration in his letter pressuring Mr Kwarteng and his predecessor Nadhim Zahawi to publish the OBR forecast ahead of the small budget and said OBR had assured him on August 26 that it could made a forecast for that period and have been working on it for a month.

“OBR is ready to provide a meaningful forecast along with the September 23 statement when requested by the Treasury Department. No such request has been received,” Mr. Stride said.

Mr. Stride said he was pleased to see the OBR meeting take place.

“The Prime Minister and the Prime Minister must use this meeting as a moment of reset – an opportunity to urgently come up with an OBR forecast that incorporates credible new fiscal rules and a plan that OBR assesses. is have good chance to meet them.

“Then we can all take a deep breath and start moving forward with more confidence.”

Read more:
Kwasi Kwarteng insists government ‘protects people across UK’
Government minister admits tax cuts are most beneficial for the wealthy

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Senior Tory told Sky News’ Daily Podcast earlier on Thursday: “Many colleagues are very concerned and I think that’s not surprising at all.

“I mean, I can speak for myself. . . “

Mr Stride added that he didn’t think it was the incompetence that was causing the current problems and suspected “some of those involved were a bit surprised at how quickly the market was moving” but he suggested. The publication of an OBR forecast will be central to appeasing the market by “showing credibility”.

A YouGov poll for The Times showed Labor was open 33 points ahead of the Conservative Party.

Tory MP Sir Charles Walker admitted his party would be “obliterated” if an election were held tomorrow – and “would cease to exist as an active political party”.

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