Office for Budget Responsibility (Intergenerational Reports) Bill

A

BILL

TO

Amend the Budget Responsibility and National Audit Act 2011 to allow the Office for Budget Responsibility to prepare an intergenerational report every five years to assess long-term sustainability of government policies;

BE IT ENACTED by the Kings’s Most Excellent Majesty, by and with the advice and consent of the Lords, and Commons, in this present Parliament assembled, and by the authority of the same, as follows –

1 Amendment of the Budget Responsibility and National Audit Act 2011

(1) The Budget Responsibility and National Audit Act 2011 is amended as follows—

(a) in subsection 4(2), omit “(3) and (4)”, substitute “(3), (4), and (4A)”.

(b) After subsection 4(4) insert -

(4A) It must also, on at least one occasion every five years, prepare-

(a) An intergenerational report to assess the long-term sustainability of current Government policies over the 40 years following the release of the report, including by taking account of the financial implications of demographic change.
(b) subsequent intergenerational reports to be publicly released and tabled within five years of the public release of the preceding report.

(c) In subsection 4(5), omit “(3) or (4)”, substitute “(3), (4), or (4A)”

(d) in subsection 6(1), omit “(3) or (4)”, substitute “(3), (4), or (4A)”

(e) in subsection 12(3) of Schedule 1, omit “section 4(3) and (4)”, substitute “sections 4(3), 4(4) and 4(4A)

2 Further amendments to the Budget Responsibility and National Audit Act 2011

(1) After Subsection 9(2) of the Budget Responsibility and National Audit Act 2011, insert the following

(2A) Holders of government information must comply with a request in time to allow the information to be taken into account in the preparation of the intergenerational report under subsection 4(4A), unless the Office is ensured it is not practicable to do so.

3 Extent, commencement, and short title

(1) This Act shall extend across the whole of the United Kingdom of Great Britain and Northern Ireland.

(2) This Act shall come into force on the first day of the financial year after receiving Royal Assent.

(3) This Act may be cited as the Office for Budget Responsibility (Intergenerational Reports) l Act.

This Bill was submitted by Sir NGSpy KB KG KCMG MBE on behalf of Unity.

The Budget Responsibility and National Audit Act 2011

Opening Speech

One of the most consistently enduring difficulties economic policy in this country runs into is adjusting to long-term trends, rather than fixating on small-scale and short-term issues. Too often they drive political debates, tarnish important reforms, and fail to build a society for those who will live in it for years to come. While we obviously need to be aware and responsive to the issues of the day, the undergirding principle of reducing intergenerational inequity and ensuring that any short-term benefit does not come at the expense of future generations.

The solution this bill aims to call for is to expand the mandate of the Office of Budget Responsibility to design and publish an Intergenerational Report, which would come every five years and would look into the predicted long-term economic impact of existing policies forty years down the line, and importantly, would look at the impact upon those future generations. The long period between each report creates a long enough time period for the Office of Budget Responsibility to conduct its work in a way that is fearless of short-term political blowback, while the second clause of this bill strengthens its powers to secure government information for the improved accuracy of the report.

The model of the intergenerational report, or reports following a similar design, has been experimented with overseas, however, is most recognisable in the Australian context, where reports have helped strengthen public policy analysis and have greatly aided governments in tackling fiscal challenges such as the implications of a shifting tax base. While the Australian context is not perfect, given the way the Australian Treasury isn’t always as independent as you’d want for this analysis, the model taken by this bill gives the power to the Office of Budget Responsibility, a much more trusted, independent, and reliable authority.

I hope this house can come in support of a shift towards greater evaluation and measurements of fiscal policy, and eventually work to develop smart policy to answer the questions brought by future intergenerational reports.

This reading will end on Wednesday 19th July at 10pm.