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Monday, December 23, 2024

Jeremy Hunt Urges Government to Block OBR Review of His Spending Plans

Jeremy Hunt has called on Cabinet Secretary Simon Case to halt the release of a review by the Office for Budget Responsibility (OBR) regarding his spending plans, which is set to coincide with the upcoming budget announcement.

The former Chancellor criticized Shadow Chancellor Rachel Reeves for allegedly politicizing the OBR after she declared intentions to publish a review of the spending forecasts from his time at the Treasury. Government sources suggest this review may provide Reeves with evidence of a £22 billion “black hole” in spending for the current year.

Hunt vehemently disputes the existence of such a shortfall, stating he has not been contacted by the OBR or the Treasury concerning the review, despite his leadership in the finance ministry until early July.

In a recent communication with the OBR, Hunt escalated his concerns to Case, questioning the appropriateness of releasing the report on budget day. He emphasized that the OBR had previously assured him it would not comment on ministerial conduct, asserting that there is “no constitutional precedent” for a review commissioned by the current government regarding a previous government’s actions to be published without prior consultation.

Hunt expressed his support for the OBR but warned that entering political territory without due process undermines its credibility and raises concerns about the civil service’s impartiality. He asked Case to confirm whether the OBR was advised on the timing of the report’s release and whether it consulted the former government.

Hunt stated, “I urge you to protect the OBR’s political impartiality and ensure that basic procedural fairness is observed.”

In response, Reeves criticized Hunt during parliamentary questions, accusing him of evading scrutiny. She stated, “We must not downplay the seriousness of the situation. His response suggests he shares more similarities with Liz Truss and Kwasi Kwarteng than previously thought.”

A spokesperson for No 10 rejected claims that the government was using the OBR as a political tool, asserting that Prime Minister Rishi Sunak is committed to supporting the independent body rather than undermining it. The spokesperson emphasized the need for honesty regarding the fiscal challenges the government faces.

In an article for the Times, Hunt argued for “procedural fairness,” contending that he should be permitted to respond to the review. He suggested that addressing fiscal pressures within established rules could have led to a more productive discussion about long-term public finance solutions, rather than a focus on alleged black holes.

Government insiders have indicated that the report is expected to dispel any notion that Reeves exaggerated the fiscal challenges identified during the government’s tenure, implying that Sunak and Hunt cannot deny these issues occurred under their leadership.

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