What is the primary role of the Office for Budget Responsibility (OBR)?

The primary role of the Office for Budget Responsibility (OBR) is to provide independent analysis on the UK's public finances. This organization was established to improve the transparency and credibility of the UK's fiscal policy by offering objective assessments of the government’s budgetary policies and their impact on the economy.

The OBR is tasked with producing forecasts for the economy and the public finances, which includes evaluating the sustainability of public debt and providing an assessment of the government's fiscal measures. This independent analysis ensures that the government's fiscal approach is understood in the context of economic realities, which is crucial for informed public debate and decision-making.

In contrast, although the annual budget is crucial, the OBR does not set it; rather, it assesses and critiques the government's proposals. The implementation of government spending policies falls under the purview of the government itself, not an independent body like the OBR. Additionally, monetary policy, which involves managing interest rates and money supply, is the responsibility of the Bank of England, not the OBR. The focus of the OBR remains firmly on public finance analysis and providing unbiased economic forecasts, making its role distinctive and vital for fiscal accountability.