The Budget Responsibility Bill would require ministers to request an assessment from the Office for Budget Responsibility (OBR) for every major fiscal announcement and give the OBR the power to decide to publish one if the minister failed to request it. This follows the September 2022 ‘mini-budget’. The statement included plans that would have resulted in a projected £45bn reduction in tax income. It did not have an accompanying OBR assessment.
Budget Responsibility Bill (354 KB , PDF)
The Office for Budget Responsibility (OBR) provides independent analysis of the UK’s public finances. The chancellor must request that the OBR produce forecasts at least twice a year. These often coincide with the spring budget and autumn statement.
The Budget Responsibility Bill has one substantive clause. It would amend the Budget Responsibility and National Audit Act 2011 so that a minister must ask the OBR to produce a report when making a fiscally significant announcement. If they do not, the OBR can decide to produce a report anyway. This is known as the ‘fiscal lock’. It would not apply to spending that is both temporary and in response to an emergency, like the Covid-19 furlough scheme.
Following the bill’s announcement in the King’s Speech, the initial Cabinet Office briefing notes stated that the bill’s purpose was “to capture and prevent those announcements that could resemble the disastrous Liz Truss ‘mini-budget’”. The briefing was republished with references to Ms Truss removed.
In September 2022, under the Truss government, then Chancellor Kwasi Kwarteng presented a growth plan, widely referred to in the media as the ‘mini-budget’. The statement included plans that would have resulted in a projected £45bn reduction in tax income. Mr Kwarteng had not requested an accompanying independent assessment from the OBR. He said that a medium-term fiscal plan was forthcoming, and the OBR would publish a forecast to include both sets of announcements before the end of the year. The absence of public OBR analysis is considered to be a factor in the negative reaction of the financial markets that followed.
After Mr Kwarteng’s statement, market volatility led to an increase in government borrowing costs and a devaluation of sterling against the US dollar and other international currencies.
The bill passed through the House of Commons unamended.
Budget Responsibility Bill (354 KB , PDF)
This briefing is the fifth of a series on the post-war history of the UK economy. The series proceeds decade-by-decade from the 1950s onwards, providing an overview of the key macroeconomic developments of each decade. This fifth briefing looks at the 1990s. In this decade the UK economy settled into a period of low inflation and steady growth; however, living standards growth was lower and more regionally concentrated than in previous decades.
In November 2023, the Harrington review of foreign direct investment made recommendations about how the UK could attract more cross-border investment. The new Labour government has said tackling barriers to investment is a priority.
Lithium-ion batteries are the most popular type of rechargeable battery and are used in a wide range of electrical devices worldwide. The Lithium-ion Battery Safety Bill [HL] would provide for regulations concerning the safe storage, use and disposal of such batteries in the UK. The bill is a private member’s bill sponsored by Lord Redesdale (Liberal Democrat). The House of Lords is scheduled to debate the bill at second reading on 6 September 2024.
![Lithium-ion Battery Safety Bill [HL]: HL Bill 8 of 2024–25](https://lordslibrary.parliament.uk/content/uploads/sites/2/2020/09/Energy-568x426.png)