Treasury announces candidates for OBR

By Jaimie Kaffash

12 October 2010

Chancellor George Osborne announced the government’s preferred candidates for members on the Office for Budget Responsibility in the Commons today.

The Treasury has put forward Stephen Nickell, a professor of economics at Oxford University, and Graham Parker, who is already serving on the interim OBR and is the former head of the public sector finances team at the Treasury. Osborne said that the Treasury select committee would be able to veto any appointments to the OBR board and that this would be enshrined in legislation.

The chancellor also released new terms of reference to safeguard the body’s independence. In the short term, there is likely to be an announcement from OBR chair Robert Chote on the new location of the office, away from the Treasury.

Osborne said that the OBR will not be able to comment on the fiscal mandate, as that was a matter for Parliament to decide.

He added that the Commons would discuss the possibility of the OBR examining the fiscal policies of opposition parties.

Andrew Tyrie, chair of the Treasury select committee, welcomed Osborne’s announcements. He said: ‘I am delighted that not only has the chancellor said that he "will not appoint a candidate" to the board "who is judged unsuitable by the Treasury select committee", he intends to give this veto statutory force.’

Tyrie said that the OBR’s terms of reference appeared to reflect the select committee’s recommendations. ‘These would give the OBR a good prospect of entrenching its independence,’ he added.