Funding the Future Is it time to abolish the OBR?
Dec 4, 2025
The discussion dives into the creation of the Office for Budget Responsibility and its implications on democratic control over fiscal policy. Richard Murphy critiques its role in enforcing austerity, arguing it prioritizes City interests over public welfare. He dismantles the myths surrounding government borrowing and highlights how the OBR overlooks crucial outcomes like employment and climate goals. Advocating for a focus on investment and social equity, Murphy calls for abolishing the OBR to restore economic democracy.
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Democracy Lost Over Fiscal Control
- Richard Murphy argues the OBR removed democratic control over fiscal policy when created in 2010.
- He links this to prior Bank of England independence in 1997 as part of depoliticising economic decision-making.
Pre-OBR Public Achievements
- Richard Murphy recalls the UK managing world wars, creating the NHS and the welfare state without an OBR.
- He uses this history to question the necessity of the OBR introduced in 2010.
OBR Enforces Austerity, Not Neutral Analysis
- Murphy says the OBR enforces fiscal rules that embed austerity and serve City of London interests.
- He contends these rules treat government like a household and ignore sovereign currency realities.