OBR a backseat driver with out-of-date maps, thinktanks tell Rachel Reeves

The Guardian World

by Heather Stewart

March 1, 2026

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The Office for Budget Responsibility (OBR) is facing calls for reform as an alliance of think tanks urges Chancellor Rachel Reeves to review its role in limiting public investment opportunities. With the UK government under political pressure following recent byelection defeats, experts argue that the OBR’s outdated framework is hindering efforts to boost spending on critical areas like green energy and healthcare infrastructure. The thinktanks have highlighted the watchdog’s reliance on out-of-date economic models and its conservative approach to fiscal forecasting, which they say stifles ambitious investment plans. The call for reform comes ahead of the chancellor’s spring budget forecast, where Reeves is expected to outline her economic strategy. Think tank allies argue that revising the OBR’s mandate could unlock billions in public funding for projects aimed at addressing long-term challenges such as climate change and social inequality. They emphasize that the current system, designed during a different economic era, fails to account for modern fiscal priorities, including the need for sustainable growth and innovation. Reform advocates suggest that aligning the OBR’s remit with contemporary economic realities would allow for more flexible and proactive budget planning. This shift could enable greater public investment in sectors critical to future prosperity, such as green technology and renewable energy projects. By updating the watchdog’s tools and methods, Reeves could also foster a more dynamic response to global economic trends, including the rise of sustainable development as a key policy focus. The push for OBR reform reflects broader concerns about the UK’s ability to meet its long-term economic goals under the current fiscal framework. Critics argue that the watchdog’s rigid approach has constrained public spending at a time when significant investments are needed to address pressing challenges such as the cost-of-living crisis, aging infrastructure, and climate change mitigation. This issue is not just of domestic importance; it also carries global significance. As countries worldwide

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Originally published on The Guardian World on 3/1/2026