OBR chair Richard Hughes resigns; search launched

If you teach economics or politics this week, start with today’s news: Richard Hughes has resigned as chair of the Office for Budget Responsibility. In a statement on 1 December 2025, HM Treasury said he wrote to the Chancellor to step down. Rachel Reeves thanked him for five years of service and reaffirmed that the government will protect the OBR’s independence. The Treasury will run a competitive external recruitment in the coming weeks.

A quick refresher helps. The OBR is the UK’s independent budget watchdog, created in law to examine and report on the sustainability of the public finances. It produces the official economic and fiscal forecasts that accompany the Budget and the Spring Statement, with judgements made by the OBR rather than ministers. These duties are set out in the 2011 Act and explained on the OBR’s own site.

Independence is more than a promise; it is written into statute. The law gives the OBR complete discretion over its work and requires it to act objectively, transparently and impartially. It can take account of government policy when forecasting, but it must not judge alternative policies-so it stays out of day‑to‑day political arguments while still scrutinising the numbers that matter.

So who picks the next chair? By law, the Chancellor appoints the three members of the Budget Responsibility Committee (including the chair) only with the consent of the House of Commons Treasury Committee. Terms are five years and no one can serve more than two terms, the OBR explains. The Institute for Government notes this Commons consent power is unusual and acts like a veto to safeguard the OBR’s independence.

What does the chair actually do? The chair leads the Budget Responsibility Committee, which has executive responsibility for the OBR and signs off the judgements behind each forecast. HM Treasury set this out when discussing the role during a reappointment notice earlier this year, underscoring how central the chair is to the credibility of the watchdog’s work.

Why should you care as a learner or teacher? When a Chancellor delivers a Budget, the headline numbers rest on OBR forecasts. The watchdog continues to produce two forecasts each year, and-following recent updates-assesses progress against the government’s fiscal rules once a year to reduce market‑shaking speculation while keeping scrutiny. That context helps students see how institutions evolve without losing independence.

What happens next is a useful study in checks and balances. The Treasury will advertise and interview through an open competition, then the Treasury Committee will hold a pre‑appointment hearing and decide whether to consent. If MPs say no, the Chancellor must put forward another candidate. In 2020, for example, the Committee gave its consent to Richard Hughes after a public hearing and published its decision.

If you’re leading a class, try framing this as a democratic design question. The executive proposes, Parliament consents, and an independent body produces the analysis the country relies on. Ask students how this structure builds trust, and whether they would change anything to strengthen scrutiny without slowing essential decisions.

As you follow the appointment, notice the language ministers use. HM Treasury says the government is committed to protecting the OBR’s independence and the integrity of the fiscal framework. That promise will be tested by the recruitment they now run-and by the questions MPs ask at the hearing.