By David Williams
15 July 2010
Chancellor George Osborne has announced that the Treasury select committee will be given a veto over his choice of chair for the Office for Budget Responsibility.
Giving evidence to the committee this morning, Osborne also revealed that recruitment is to begin tomorrow, and that he expects all applications to be submitted by the middle of August.
Osborne told MPs: ‘What I would propose to do, subject to your approval, is to give this committee a veto on the person nominated by the chancellor of the day.
‘I want there to be absolutely no doubt that this is an independent body, that this person has the support and approval of the Treasury Select Committee.’
He said he believed it is the first time a select committee has been given a say over such an appointment.
Osborne also backed a recommendation by the current interim head, Sir Alan Budd, that the OBR secretariat would move out of their current offices in the Treasury to a new site.
The chancellor indicated that a permanent head would probably be appointed for a five-year term, with the chancellor and select committee retaining an option to renew the appointment for a further term.
But Osborne suggested that the committee would not be given the power to sack the head, as that would potentially undermine the independence of the position.
The chancellor said he hoped his announcement would put to rest any doubts over the OBR’s freedom from government interference.
The move comes after the independence of the OBR was called into question following a row over the release of employment projections.
Committee chair Andrew Tyrie welcomed the announcement as ‘very helpful’, and promised to look at the proposal careful.
Osborne established the OBR when he became chancellor in May in time for the emergency June 22 Budget. The office is expected to made a statutory body through an Act of Parliament this autumn.
The Treasury select committee also launched an inquiry this afternoon into the permanent arrangements for the OBR. The interim body published its recommendations on the subject today, and the committee intends to investigate the plans and compare them with international precedents before the permanent body is established.
15 July 2010
Chancellor George Osborne has announced that the Treasury select committee will be given a veto over his choice of chair for the Office for Budget Responsibility.
Giving evidence to the committee this morning, Osborne also revealed that recruitment is to begin tomorrow, and that he expects all applications to be submitted by the middle of August.
Osborne told MPs: ‘What I would propose to do, subject to your approval, is to give this committee a veto on the person nominated by the chancellor of the day.
‘I want there to be absolutely no doubt that this is an independent body, that this person has the support and approval of the Treasury Select Committee.’
He said he believed it is the first time a select committee has been given a say over such an appointment.
Osborne also backed a recommendation by the current interim head, Sir Alan Budd, that the OBR secretariat would move out of their current offices in the Treasury to a new site.
The chancellor indicated that a permanent head would probably be appointed for a five-year term, with the chancellor and select committee retaining an option to renew the appointment for a further term.
But Osborne suggested that the committee would not be given the power to sack the head, as that would potentially undermine the independence of the position.
The chancellor said he hoped his announcement would put to rest any doubts over the OBR’s freedom from government interference.
The move comes after the independence of the OBR was called into question following a row over the release of employment projections.
Committee chair Andrew Tyrie welcomed the announcement as ‘very helpful’, and promised to look at the proposal careful.
Osborne established the OBR when he became chancellor in May in time for the emergency June 22 Budget. The office is expected to made a statutory body through an Act of Parliament this autumn.
The Treasury select committee also launched an inquiry this afternoon into the permanent arrangements for the OBR. The interim body published its recommendations on the subject today, and the committee intends to investigate the plans and compare them with international precedents before the permanent body is established.
