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Chancellor writes to the Treasury Committee about the future shape of the OBR

21 July 2010

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When he gave evidence on the Budget the Chancellor announced that the Treasury Committee would have a veto on the appointment of the Chair of the OBR

The Chancellor has now said:

"I also wish to ensure that the Chair cannot be removed at the whim of the Chancellor. The Bill will contain provisions to the effect that the Chair may be removed by the Chancellor only under exceptional circumstances and with the express agreement of the TSC."

In evidence to the Committee today, the Chair of the Interim OBR, Sir Alan Budd, supported this proposal, saying neither the Chancellor nor the Committee should have sole power to dismiss the head of the OBR

Andrew Tyrie MP, Chairman of the Committee, said

"I warmly welcome the Chancellor’s decision to think again after his initial caution, and to grant a double lock on dismissal of the Chair of the OBR. We are taking further evidence tomorrow, and hope to report by autumn."

Written Evidence submitted by the Chancellor of the Exchequer