Office for Budget Responsibility (Manifesto Audits)

Debate between Ed Balls and Baroness Morgan of Cotes

Wednesday 25th June 2014 Commons Chamber

[Nicky Morgan]

Let me assure the hon. Gentleman that I will keep to the consensual tone that the shadow Chancellor, often with great difficulty, tried to strike. The letter from Robert Chote makes it very clear that these issues would be better discussed at the start of the next Parliament. The reality is that, actually, the Opposition are looking for a fig leaf for their lack of an economic plan. That is the reality of the motion.

[Ed Balls]

I spoke to the head of the OBR last Friday, who told me that if the House agrees to proceed, with Government support, by the end of June, he would be content, comfortable and pleased to proceed with the reform this year. So when the Minister says that he is against this reform, could she just correct the record, because I believe that to be incorrect?

[Nicky Morgan]

It is all very well for the right hon. Gentleman to have a conversation with the head of the OBR, but we do not know the details of that conversation; if he is going to release a transcript, I would be very interested to read it. In fact, the letter dated 15 January makes it very clear that

“To embark on this exercise in a rush, or with insufficient resources, could be very disruptive for the parties and very damaging to the OBR.”

Is the right hon. Gentleman saying that he wants it to be damaging to the OBR? I do not think that he does.

--- Later in debate ---

[Nicky Morgan]

I will come to the overall principle of having the OBR look at parties’ manifestos, but how long has it taken the Dutch Central Planning Bureau to get to that stage? If the hon. Gentleman has the answer, I would be interested to hear it.

Thirdly, there are genuine practical considerations that must be weighed in the balance. The Opposition do not seem to acknowledge that rather than producing costings of Government policies, the OBR certifies the costings already produced. The OBR, which currently employs only 19 members of staff, plus three members of the Budget Responsibility Committee, would need significant additional resources and a range of specialist skills in order to take on such a role. Have the Opposition considered where it would recruit from?

[Ed Balls]

I am grateful to the right hon. Lady for giving way. I have discussed every issue she has raised with the head of the OBR, whose view is that they do not provide a reason not to proceed, so long as the Government support the proposal. The Minister is setting out why she and the Government do not support it, but they should not hide behind the head of the OBR. He is happy to proceed; it is she who is blocking it.

[Nicky Morgan]

As far as Government Members are aware, the letter of 15 January put the comments of the head of the OBR on the record. The right hon. Gentleman has not made any transcript of any such conversation available. We do not know what was discussed or what reservations were expressed by the head of the OBR.

[Ed Balls]

I spoke to the head of the OBR last Friday, in preparation for this debate. The right hon. Lady, who has stepped in for the Chancellor, is quoting a letter from January. Surely, to prepare for this debate, she would have spoken to the OBR in the days before. If he has changed his views since last Friday and contradicts what he told me then, I will withdraw my comments. Did the Minister speak to him; is he content to proceed, or has she not bothered to have the conversation?

[Nicky Morgan]

It is not a question of not bothering to have the conversation. If the right hon. Gentleman has had a conversation, where is the transcript and why has it not been released to the House? If he has a transcript, we would like to see it. We would like to know what the head of the OBR said about—[Interruption.] If I allow the shadow Chancellor to stand up again, will he tell us how many additional staff the head of the OBR said he would need to recruit, where he is going to find them from and how quickly they can be appointed? That is the premise of the right hon. Gentleman’s argument.

[Ed Balls]

Is the right hon. Lady really saying that I am misleading the House? I spoke to the head of the OBR last Friday, and he said to me that if the Government agree by the end of June, we can proceed and these obstacles can be overcome. In his view, the issues that the Minister is raising about resourcing and independence can all be resolved if she chooses to do so. Is she really saying that I am misleading—[Interruption.]

--- Later in debate ---

[Nicky Morgan]

I want to make some progress.

[Ed Balls]

rose—

[Nicky Morgan]

I will give way to the right hon. Gentleman, for the last time.

[Ed Balls]

I spoke to the head of the OBR. He believes that if he is to cost manifestos in time, he will need to start in the autumn, he will need agreement by the end of June, and he will need the details to have been worked out by the end of August. The Minister is obfuscating. It is she who is blocking this, not the head of the OBR.

[Nicky Morgan]

Let me say for the last time that if the right hon. Gentleman wanted to pray in aid evidence from a conversation that he had last week, he should have put it in writing and presented it to the House, or placed it in the Library.

If we ask the OBR to recruit additional staff, what will they do between elections? I do not know whether Labour Members have considered the fact that what they propose would involve a radical change in the rules governing civil service contact with the Opposition. I do not know whether they have fully explored the primary legislation that would be required to make this happen, just as I do not know whether they have considered how the demands of Opposition parties would be balanced against other Government priorities.