Downing Street distances itself from Jacob Rees-Mogg’s attack on Office for Budget Responsibility

Economists rejected Jacob Rees-Mogg’s ideas (Aaron Chown/PA)

(Picture: PA Wire)

Number 10 defended the Government’s independent fiscal watchdog the Office for Budget Responsibility on Thursday, distancing itself from critical comments made by Business Secretary Jacob Rees-Mogg.

Mr Rees-Mogg questioned the accuracy of the OBR’s forecasting in an interview with ITV political editor Robert Peston on Wednesday night saying its record hasn’t been "enormously good" and said Chancellor Kwasi Kwarteng should use a range of economic forecasts when making major policy decisions.

But asked to respond to those remarks, the Prime Minister’s official spokesman insisted the OBR was a "highly respected body” in the UK and worldwide”.

“The OBR is the Government’s official forecaster and the Prme Minister has said on a number of ocassions she values their scrutiny and respects their indepence,” the spokesman said. “They are a highly regarded body worldwide.

“It is true to say that other forecasts are made and it’s important to consider all available evidence and views when making these decisions but the OBR is the Government’s official forecasters.”

Pressed on whether Liz Truss had confidence in the accuracy of the OBR’s forecasts, the spokesman added: “Yes...the OBR is a respected organisation and an important part of our fiscal structure.”

The Chancellor’s failure to ask the OBR to publish an analysis of his tax-cutting mini budget last month has been blamed for sparking turmoil in financial markets.

With borrowing costs surging and mortgage and pension markets showing strain, Mr Kwarteng has brought forward the publication of his longer-term tax and spending plans and the OBR’s independent economic forecast to October 31, more than three weeks earlier than previously scheduled.

He had planned initially to set out his plans on November 23 - two months after his “mini-budget” triggered a rout in British bonds.

With doubts growing over Ms Truss’s leadership, many Tory MPs are pressing the Chancellor to go further and scrap or delay some or all of their £43billion of tax cuts to restore market confidence in the Government’s stewardship of the economy.

Mr Rees-Mogg told the Peston programme on ITV: "The job of Chancellors is to make decisions in the round rather than to assume that there is any individual forecaster who will hit the nail on the head. The OBR is not the only organisation that is able to give forecasts."