Budget comes under scrutiny again
The Treasury Select Committee – a group of MPs from across the parties in Westminster – issued its first report yesterday examining the emergency budget that took place last month.
The Committee raised several concerns with the measures outlined in the budget - particularly that the budget will affect those on low incomes more than those on middle incomes, and also that the cuts in spending could have a negative impact on the UK economy as it comes out of recession.
The Committee also voiced concerns over the newly created Office for Budget Responsibility (OBR). The OBR was created to produce accurate economic forecasts, and was designed to be independent from the government. Yet, concerns have been raised over the independence of the OBR as the OBR adjusted its economic predictions before the Budget and the OBR is based inside the Treasury. The Chancellor, George Osborne, has already agreed however that the OBR should move out of the Treasury to help maintain its independence.
Although this was the first report of the Committee, the measures included within the Budget, and the role and independence of the OBR are sure to be discussed further over the coming months.
 
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