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Cross-party MPs demand Kwasi Kwarteng brings forward next ‘fiscal event’

An influential cross-party group of MPs has said the Chancellor should bring forward his next “fiscal event” and economic forecast after the market fallout from his mini-budget.

The Treasury Select Committee, chaired by an influential Tory MP, said Mr Kwarteng should reveal his medium-term fiscal plan at the end of October, instead of November 23 as currently planned.

The Office for Budget Responsibility was not asked to produce its usual forecasts at the mini-budget last Friday, but it will for the November event.

Experts said the market collapse in recent days was partially caused by the lack of a forecast from the OBR. The committee had called for a forecast.

In a letter to the committee, the OBR said it would present its initial forecast to the Chancellor on October 7, and it could have the full forecast ready weeks later.

The MPs said: “The committee argues the fiscal event and OBR forecast planned for November 23 should be brought forward given ‘continued uncertainty within markets’, that it would benefit a key meeting of the Monetary Policy Committee on November 3, and because a meaningful OBR forecast can be provided earlier.”

Committee chairman Mel Stride said it is “critical” that the economic analysis is brought forward.

Committee chairman Mel Stride
Committee chairman Mel Stride (Stefan Rousseau/PA)

“Urgent need now to increase confidence of markets that HM Treasury Kwasi Kwarteng fiscal plans stack up,” the Conservative MP tweeted.

“It is critical that OBR forecast and Chancellor’s statement are brought forward to end October or earlier.

“Critical point also is that the Bank of England’s Monetary Policy Committee (which sets interest rates) meets on November 3 to decide on next moves in base rate which will impact millions.

“Not acceptable that they should be expected to take this huge decision without an OBR forecast when we know this can be provided before they meet.”