London: Legislation to stop “significant uncosted measures” from being announced without first being evaluated for their potential effects on public finances is expected to be proposed by the newly elected British government on Thursday.
The Budget Responsibility Bill will implement a “fiscal lock,” which dethroned the Conservatives earlier this month.
This means that any announcement by the government involving “significant and permanent tax and spending changes” will be submitted to an impartial evaluation by the Office for Budget Responsibility.
The OBR would have the flexibility to present its analysis whenever it wished.
A subdued allusion to the British “mini-budget crisis” involving former Finance Minister Kwasi Kwarteng and Prime Minister Liz Truss can be found in the notes.
Early in September 2022, just after gaining office, Truss and Kwarteng made an unexpected fiscal announcement that included a number of tax cuts and was dubbed “seismic” by commentators.
Source (CNBC)
