Liz Truss refuses to move economic forecast despite calls from MPs

It came ahead of today's rise in energy costs which will see households hit with higher bills, which the Government has sought to cap with its Energy Price Guarantee.

The Prime Minister and Chancellor yesterday met with the Office for Budget Responsibility, where they decided that they would not publish its financial forecast on borrowing, debt, inflation and GDP until 23 November.

In a readout from the meeting, the Treasury said that the two “reaffirmed their commitment to the independent OBR and made clear that they value its scrutiny” following news that the Government refused to publish a previous forecast alongside its mini-budget last week.

The OBR however, made clear that it would provide the Chancellor with its assessment by Friday next week, amid suggestions that MPs may try to force the Government to publish it in order to calm the markets.

The Prime Minister and her Chancellor have faced a substantial economic and political backlash in the days following the mini-budget which forced the Bank of England to intervene with a multi-billion pound package to prevent a run on pension funds.

Tory MPs have reacted with dismay following the effect of the fiscal statement which saw the value of the pound drop to record lows before recovering following the Bank’s intervention.

Earlier this week, the Treasury Select Committee, chaired by Tory MP Mel Stride, which previously urged Mr Kwarteng to reveal his medium-term fiscal plan at the end of October, called for OBR forecasts to be brought forward to reassure the markets.

Further details emerged on Thursday after the OBR said it prepared a draft forecast for the new Chancellor on his first day in office.

In a letter to the Scottish National Party’s Westminster leader Ian Blackford the body confirmed it had “offered, at the time, to update that forecast to take account of subsequent data and to reflect the economic and fiscal impact of any policies the Government announced in time for it to be published alongside the ‘fiscal event’.”

He said the OBR was not commissioned to produce an updated forecast but said it would have been in “a position to do so to a standard that satisfied the legal requirements of the Charter for Budget Responsibility”.

The impact of tax cuts have raised fears that the Government would return to the austerity economics of the last decade in order to fund its pledges.

This could see cuts both to Government departments which provide public services, as well as reductions to benefits, after a rise with inflation was guaranteed by the then-chancellor Rishi Sunak.

Liz Truss told broadcasters yesterday the Work and Pensions Secretary Chloe Smith would make an announcement “in due course” about whether benefits would be uprated in line with inflation this autumn.

Meanwhile the Treasury will write to Cabinet ministers asking them to make savings within their existing departmental budgets.

When quizzed about the cuts, Treasury minister Chris Philp said earlier this week: “We are going to look for efficiencies wherever we can find them.”