Legislation and related material

The OBR is a non-departmental public body, under the Budget Responsibility and National Audit Act 2011. The Act provides for the establishment of the office, and sets out its functions and broad governance structure.

The Charter for Budget Responsibility

The Charter for Budget Responsibility sets out the OBR’s remit, how it is to perform its duties, the required content of its key publications and the arrangements for determining the timing of its forecasts and other key publications. The Charter was modified in March 2014 to include the OBR’s responsibilities regarding the welfare cap and in December 2014 to reflect the Government’s updated mandate for fiscal policy. It was also updated in October 2015 to include provision for a Fiscal risks statement and to reflect further updates to the Government’s mandate for fiscal policy.  The previous versions are available at the bottom of this page.

15th October 2015
pdf, 427.97 kB

Framework document

The OBR’s governance and management arrangements are set out in greater detail in a Framework document drawn up by the Treasury and agreed with the OBR. This describes the purposes of the OBR, how it is accountable to Parliament and the Chancellor, its governance and structure, the responsibilities of the accounting officer, the content of the annual report, the audit arrangements, and its managements and budgeting processes. The Framework document was reviewed and amended in May 2014. The previous version is available at the bottom of this page.

28th May 2014
pdf, 782.01 kB

Memorandum of Understanding

The Memorandum of Understanding sets out the agreed working relationship between the OBR, HM Revenue and Customs, the Department for Work and Pensions, and HM Treasury. It sets out the arrangements needed for effective working, covering each institution’s key responsibilities, coordination of the forecast process, and the process for information sharing.

4th April 2011
pdf, 220.4 kB

Welfare cap

The Chancellor and Robert Chote exchanged letters in December 2013 on the role the OBR would take in assessing the Government’s performance against the welfare cap that it  introduced at Budget 2014.

5th December 2013
pdf, 386.15 kB

External review

The OBR’s non-executive members commissioned Kevin Page to lead the first External review into the work of the OBR in April. The Review concludes that the OBR has “laudably achieved the core duties of its mandate” and “has succeeded in reducing perceptions of bias in fiscal and economic forecasting”. It also makes recommendations on how to build upon our early successes as we approach the end of our first five years.

Construction of the permanent body

As part of his role as the Chairman of the interim OBR, Sir Alan Budd provided the Government with advice about the construction of the permanent body.

Terms of Reference

The Terms of Reference, which were in effect in advance of the legislation to establish the OBR, were set by the Chancellor with agreement from the Chairman of the OBR.

12th October 2010
pdf, 227.29 kB

Previous versions of key governance documents

4th April 2011
pdf, 963.25 kB