OBR to face parliamentary inquiry after Budget blunder

The grilling comes after former head Richard Hughes resigned last week over the inadvertent early release of its assessment of the Chancellor’s autumn statement.

MPs on the Commons Treasury Select Committee will look at the performance of the watchdog over its 15-year history and consider potential reforms as part of the probe.

Their attention will focus on the accuracy of its forecasting and its impartiality, as well as whether changes should be made to its "processes and methodology" and the quality of its communications, the committee said.

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The OBR provides independent forecasts on the state of the economy and public finances, and judges the Government’s performance against its fiscal targets.

Critics have argued that the watchdog can serve to inappropriately constrain Government decisions, though its assessments are not binding.

Chairwoman of the Treasury Committee Dame Meg Hillier said: "The OBR is an important part of the UK's fiscal framework.

"But it is often castigated by frustrated economists who feel they should be in charge because they shout the loudest.

'And we need only remember Liz Truss' mini-Budget to remind ourselves of what happens when the OBR is sidelined.

"This inquiry is not a stick to beat the OBR with. What my Committee intends to do is have an honest conversation about what the watchdog does well and where it needs to do better.“I hope this will provide a useful foundation for the new chair when they are appointed."