Reform plans to keep UK's budget watchdog

The Office for Budget Responsibility (OBR) would be retained if Reform UK wins the next general election, the party is set to announce, following suggestions it could scrap the budget watchdog.

Robert Jenrick will back the OBR and commit to maintaining the independence of the Bank of England, in his first speech as the party's economic spokesman.

In January, Reform UK leader Nigel Farage told the Telegraph he had "questioned the need" for the OBR, which he accused of "effectively dictating to elected politicians what they should or should not do".

But in a move to reassure financial markets and business, Jenrick will promise to reform the OBR, rather than abolish the economic forecaster.

"The OBR is far from perfect," Jenrick is expected to say, in a speech in the City of London.

"But the impetus for its creation was a desire to instill fiscal discipline, and that is something we wholeheartedly endorse."

With Reform UK consistently leading in national opinion polls, the party's economic plans are coming under greater scrutiny.

In November, Farage rowed back on Reform's previous promise to deliver tax cuts worth £90bn a year, as he sought to strengthen the party's credibility on economic policy.

Jenrick's speech is the latest attempt to signal the party can be trusted to manage the public finances.

The OBR assesses the health of the UK's economy and the government's spending plans.

It is independent of the government and its reports are usually released alongside big financial events such as the budget in the autumn.

However, some have questioned whether the body has too much power, given the level of influence its forecasts have over the government's economic policy.

Among the OBR's critics is Reform UK deputy leader Richard Tice, who last month told Politico the budget watchdog was "literally telling the government how to run its policy".

But in a change of tone, Jenrick is expected to say his party would be "happy to have our homework marked" by the OBR.

"Rather than abolish it, we will reform it," Jenrick is set to say.

"We will break up this cosy consensus and ensure it has diversity of opinion.

"And we'll run competitions for superforecasters to join the body and pay competitive salaries to those who most accurately model the impact of Treasury decisions."

Jenrick will also defend the independence of the Bank of England, which has the power to set interest rates.

While he will criticise the Bank for "taking its eye off the ball on inflation" and promise to strip it of "distractions" such as lowering carbon emissions, he will argue it is still a force for stability.

"Our interest will always be keeping inflation low because that is how we will keep people's bills down," Jenrick will say.

The speech comes a day after Reform UK announced Jenrick as the party's pick to become chancellor if it wins power at the next general election.

Jenrick was sacked as Kemi Badenoch's shadow justice secretary last month for plotting to defect, before being unveiled as a Reform recruit hours later.

Dan Tomlinson MP, Labour's exchequer secretary to the Treasury, said Jenrick had "long-lambasted the OBR" and backed former Prime Minister Liz Truss's "disastrous mini-Budget which triggered an economic meltdown".

"Jenrick and his former Tory Party smashed family finances and he'd do the same again through Reform," Tomlinson said.

Conservative shadow chancellor Sir Mel Stride said Reform UK's plans for the OBR were "in chaos".

"Just last month Farage was saying he was looking at abolishing the OBR," Sir Mel said.

"It's the same old story with Reform - say one thing, then row back as soon as questions are asked. They have no plan and no principles."

The Bank of England and the OBR did not wish to comment.