The head of the Office for budget Duty (OBR), Richard Hughes, has resigned from his post, just weeks after delivering a forecast that underpinned the Conservative Party’s pre-election tax cut pledges. The move, announced on december 2, 2025, throws further uncertainty into the economic landscape ahead of the upcoming general election and raises questions about the independence of the fiscal watchdog.
Hughes’s departure follows scrutiny of the OBR’s assessment that Chancellor Jeremy Hunt had sufficient fiscal headroom to implement the 2% National Insurance cut announced in the Autumn Statement. Shadow Chancellor Rachel Reeves is facing continued pressure over Labour’s own spending plans, with the party struggling to convincingly demonstrate its fiscal responsibility amid accusations of a “black hole” in its proposals.
Hughes served as chair of the OBR for seven years, overseeing numerous economic forecasts and independent analyses of government finances. his resignation is effective from February 2026. The OBR plays a crucial role in providing independent and objective analysis of the UK’s economic situation, and its forecasts are heavily relied upon by policymakers and financial markets.
The timing of Hughes’s exit is particularly sensitive, coming as it does during a period of intense political and economic debate. The Conservative Party has repeatedly emphasized its commitment to economic stability and responsible fiscal management,and the OBR’s forecasts have been central to that narrative. Labour,meanwhile,is attempting to position itself as the party of economic competence,but faces ongoing challenges in convincing voters of its credibility on the issue.
Reeves has defended Labour’s plans,stating they are fully costed and will not lead to higher borrowing. However,the Conservatives continue to attack Labour’s proposals,claiming they are unrealistic and woudl damage the economy. The debate over fiscal responsibility is highly likely to dominate the remaining weeks of the election campaign.
