6 July 2010
Sir Alan Budd is to step down as chair of the Office for Budget Responsibility at the end of July, after just one three-month term in the job, it was announced today.
The Treasury insists that the move is not a surprise, and that Budd always intended to oversee the setting up of the body and leave at the end of his three-month term.
But Andrew Tyrie, the new chair of the Commons Treasury select committee, said the departure would be a ‘great loss’ to the OBR, which was ‘still in its infancy’.
He added: ‘He is one of the country’s finest and most experienced economists and a man of considerable integrity. The OBR’s credibility for quality and independence of judgement is still to be fully established – its degree of independence is already a matter of concern to some.’
Tyrie emphasised that it would now be important to establish the structure of the OBR and its statutory basis, including proper accountability to Parliament.
However, a Treasury spokesman countered that it had ‘always been the case that Sir Alan planned to leave in the summer’. Budd’s appointment was primarily to provide a set of forecasts for last month’s emergency Budget, and make recommendations on the establishment of a permanent OBR.
‘He has established the OBR as a credible, independent body and the chancellor is incredibly grateful for his important work on this issue,’ said the spokesman.
It is not yet clear when Budd’s successor will be appointed, but the Treasury has emphasised that ‘the government will seek to ensure continuity for the OBR in recruiting Sir Alan’s successor’.
