Richard Hughes resigned from his position as head of the Office for Budget Responsibility (OBR) on Monday following the accidental release of Rachel Reeves’s budget. This development comes amid scrutiny over numerous leaks related to the budget, which OBR spokesman David Miles described to MPs as being widespread and potentially damaging to the organization’s reputation.
In addition to leaks about OBR forecasts, there were public comments about the timing of the OBR’s productivity assessment and its stance towards scoring pro-growth policies. Reeves recently advocated for an ambitious “youth experience scheme,” urging the OBR to evaluate its potential impact similar to how they assessed outcomes from the UK’s exit from the European Union.
The relationship between Hughes and Reeves had reportedly been strained, raising questions about the dynamics between the Treasury and the OBR—a situation that has become particularly pronounced now that Labour is in government. Prior to his resignation, Hughes expressed concerns about the “leakfest” impacting the OBR’s credibility but was unable to address these publicly before the budget was released.
As the search for Hughes’s replacement begins, some economists suggest that any new appointee may require assurance of the OBR’s independence from political pressures. The importance of this independence was emphasized by Bank of England Governor Andrew Bailey, who highlighted the need to remember the principles that led to the OBR’s establishment.
The aftermath of Hughes’s departure has raised queries about how the new chair will navigate potential challenges. Observers note that the current political climate and ongoing pressures could affect the credibility of the OBR’s work, especially with bond market investors closely monitoring the situation. Potential candidates for Hughes’s role include Clare Lombardelli, Carl Emmerson, and others with ties to both the Treasury and academia.
Source: https://www.theguardian.com/business/2025/dec/02/obr-chiefs-exit-may-ease-pressure-on-rachel-reeves-but-the-battle-isnt-over