Office for Budget Responsibility (Manifesto Audits)

Debate between Ed Balls and Alison Seabeck

Wednesday 25th June 2014 Commons Chamber

[Ed Balls]

I will talk about legislation first, then I will take two more interventions.

Of course, there are a number of detailed issues to resolve. To that end, over the past eight months, I have had a series of discussions with the permanent secretary to the Treasury, with the head of the OBR, and in the normal course of parliamentary business with the Chair of the Treasury Committee and others, and I want to update the House on where I think we are.

First, on the question whether primary legislation is necessary, in the letter that I originally wrote to the head of the OBR, which I quoted a moment ago, I cited the previously declared view of the Chair of the Select Committee, who said that he was not fully convinced that the current legislation would not allow such a role for the OBR. It was uncertain, but he was not fully convinced.

However, the head of the OBR replied to me in October, saying that he had taken legal advice from the Treasury Solicitor’s department and that the view of the Treasury Solicitor was that a change in the law was required—that there would be a need for primary legislation. To that end, I wrote to the Chancellor on 15 October to confirm that we would support any changes needed to the OBR’s charter and primary legislation, and would seek to help him build a cross-party consensus to achieve that. I wrote to the Chancellor and to the Chair of the Select Committee with a proposal for the amendment of the law, with the clauses set out for discussion. I regret to say that so far the Chancellor has not replied to my letter or engaged in that discussion, but as I said, it is not too late for him to do so.

At that time, the Clerks of the House of Commons informed us that with the Chancellor’s support and an amendment to the long title of the Bill, one option would be to table an amendment to the Finance Bill. It is just two clauses, so this change could be made well in advance of the 2015 general election. Regrettably, because there was no engagement on this two or three months ago, that change to the long title did not happen. If there was a way to table those clauses for Report stage next week, we would support a Government amendment to that effect. If not, and the Government wanted to bring forward primary legislation in the autumn, for example through a one-day Bill, we would give such legislation full support.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

During the recent elections, we saw a lot of public dissatisfaction about what happens in and from this place. Some of that is to do with the lack of transparency and consensus on matters such as this. Would it not send an important message to the public if we had cross-party consensus on openness about manifestos and the figures within them?

[Ed Balls]

I agree with my hon. Friend, and that is why we support the role that the OBR plays. The Government proposed an independent OBR, a reform that we supported, and in that spirit we want to extend its role, as happens in other countries. It is not unreasonable, and it would exactly help with the issues of trust to which my hon. Friend refers.