Democratic financial structure or plan

In the current political climate, protecting democracy is of paramount importance. However, concerns have been raised about the democratic deficit in the UK's fiscal framework. One institution at the heart of this issue is the Office for Budget Responsibility (OBR).

The OBR, created with the promise to eliminate the deficit and reduce debt, has not delivered on this promise. Critics argue that it has been successful in insulating austerity measures from democratic accountability. The New Economics Foundation (NEF) believes that the OBR's current form is not fit for purpose and proposes reforms to remove its technocratic dominance.

The NEF proposes the creation of an Office for Fiscal Transparency (OFT) to replace the OBR, while absorbing its forecasting capacity. The reform suggests making the fiscal rules only need to be met by the Treasury's own forecast, shifting economic forecasting back to the Treasury. The OBR's role would be to scrutinize the Treasury's economic forecast rather than explicitly define it.

The OFT would act as a watchdog, ensuring transparency in fiscal matters. It would be required to publish where the OFT and Treasury disagreed on economic forecasting, making fiscal policy more transparent. This reform would enable more democratic debate on fiscal policy, as the OBR would no longer have the power to veto fiscal policy decisions.

The assessment of these proposed reforms should consider both economic and democratic aspects. The NEF argues that the current approach to bolster independent institutions like the OBR is likely to fail. Instead, they propose a fiscal framework that can safeguard the UK against anti-democratic threats. This paper outlines a design for such a framework.

The OBR is part of an anti-democratic fiscal framework and cannot be protected from anti-democratic attacks. The proposed reforms have the potential to improve UK fiscal policy, making it more accountable and open. The newly suggested OFT would presumably enhance openness and accountability in fiscal matters, though the exact duties are not detailed in the available information.

In conclusion, the NEF's proposals for reforming the OBR aim to shift economic forecasting back to the Treasury, make fiscal policy more transparent, and enable more democratic debate. These reforms have the potential to safeguard the UK against anti-democratic threats and improve the democratic deficit in the fiscal framework.