Chancellor announces policies to enhance fiscal credibility
Sir Alan Budd will chair a new Office for Budget Responsibility (OBR), established on an interim basis today, to assess the state of the public finances, the Chancellor has announced.
The Chief Secretary will meet Cabinet colleagues this week to agree £6 billion of cuts in this year’s spending. This is to make an immediate start on tackling the UK’s unprecedented £163 billion deficit, boosting credibility and helping keep interest rates lower for longer.
This decision follows advice from the Treasury and the Bank of England on the feasibility and advisability of acting quickly. The Government is also today announcing that it will re-examine all spending approvals made since 1 January, to ensure that they are consistent with the Government’s priorities and good value for money.