Reeves Seeks Stability with Revised Economic Forecast Approach

British finance minister Rachel Reeves has requested the Office for Budget Responsibility to release its economic forecast in March without reviewing her fiscal target progress. This approach aims to provide stability for families and businesses while maintaining the government's growth objectives.

Rachel Reeves, the British finance minister, has tasked the budget watchdog with releasing its economic and public finance forecasts by March, omitting reviews of her fiscal target achievements. The government confirmed this strategic shift on Monday.

The independent Office for Budget Responsibility (OBR) will produce an interim forecast, as specified by the Treasury. In Reeves' previous budget announcement, plans were set for the OBR to annually assess the government's adherence to budget rules, focusing on balancing day-to-day spending and tax revenues by 2030.

Amidst speculation and business uncertainty leading up to Reeves' November budget, her decision aligns with the government's efforts to instill confidence and ensure stability, despite the recent resignation of OBR Chair Richard Hughes. Reeves cautioned Parliament about delays in appointing a new OBR chair before the March forecast release.

(With inputs from agencies.)