Liz Truss has been accused of attempting to “avoid independent scrutiny” as she prepares to hold a budget meeting next month without an official economic forecast, even though one is available if she requests it.
An emergency budget in September with long-term funding pledges has been a vital part of the frontrunner’s campaign to become Prime Minister.
The move has been branded “worrying” by an economist and expert in government finance. At the same time, the team behind Conservative leadership rival Rishi Sunak accused Ms Truss of wanting “to avoid independent scrutiny”.
The Office for Budget Responsibility (OBR) provides forecasts for all budgets as part of the founding law of the body, enacted in 2010.
Despite being funded by the Treasury, it is fully independent.
While the OBR is ready to provide an analysis for Ms Truss if she asks for it, the former Treasury minister – who counts the chancellor and chief secretary to the Treasury among her supporters – wants to go ahead without it.
A Truss spokesperson said: “The cost of living crisis means immediate action is required. A Truss government would seek to act as soon as possible to help people across the UK by cutting taxes and introducing a temporary moratorium on energy levies.”
A source in the Truss campaign told that a forecast wasn’t necessary for a “targeted fiscal event”.
But more criticism came from the former head of policy for Margaret Thatcher, the Tory PM whom Ms Truss accused of styling herself on during the campaign.
Lord Griffiths, who is now a Conservative peer, said: “The Bank of England’s devastating outlook for the economy contrasts with Liz’s optimism – for her to now prevent the OBR doing proper analysis of the facts would seem to indicate complete loss of confidence in the policy she is advocating.”
Truss risks ‘dangerous’ borrowing levels
Ms Truss has come under criticism for a perceived lack of clarity over her money promises, with veteran former cabinet minister Michael Gove accusing her of taking a “holiday from reality”.
She wants to spend £30m on cutting taxes – like reversing the National Insurance rise and cancelling the uplift in corporation tax – using money that economists no longer think exists due to inflation.
Ms Truss has also hinted she may spend more money by providing further help to people this winter, despite previously saying she would not.
Mr Sunak said she would plunge the economy into an “inflation spiral” if she did not choose between tax cuts and providing cost of living support, as it would mean “dangerous” borrowing levels.
“The reality is that Truss cannot deliver a support package as well as come good on £50bn worth of unfunded, permanent tax cuts in one go,” his team said.
