2 The re-appointment to the Budget
Responsibility Committee of Graham Parker
Background on Graham Parker
4. Since May 2010 Mr Parker has been
a Member of the interim, and then statutory, Budget Responsibility
Committee of the Office for Budget Responsibility. Prior to joining
the OBR, he was Head of the Public Sector Finance Team at HM Treasury
from November 1999 to January 2009. Before joining HM Treasury,
he worked at the Inland Revenue. Since July 2009 he has been a
Member of the IMF Fiscal Affairs Department's panel of technical
experts.[4] He is also
currently a member of the UK Statistics Authority's Deflator Review
Steering Group.[5] He was
awarded a CBE for services to HM Treasury in 2008.
Our evidence
5. In oral evidence, we questioned Mr
Parker on his suitability to be reappointed as a member of the
Budget Responsibility Committee. We particularly focused on the
work of the OBR in certifying the costings of policies, and his
previous work at the OBR. Particular topics we questioned Mr Parker
on included:
· His
independence;
· The
decision to create the OBR;
· The
sale of the student loan book and the impact on the public finances;
· How
changes to policy are accounted for between forecasts;
· How
fixed-term Parliaments affect the work of the OBR;
· The
risks from personnel changes;
· How
star chambers work for policy costings;
· How
much time is spent on policy costings that are dropped;
· How
the OBR has improved the policy costing process;
· The
OBR's response to potential requests by the Chancellor to certify
the cost of manifesto policies;
· Whether
the resources should be allocated to allow the OBR to undertake
costings rather than certifying costings;
· His
view on the Treasury Committee's recommendation to reduce the
number of Fiscal Sustainability Reports;
· Why
he will not serve his whole term;
· What
work the OBR is doing on succession planning;
· Preparations
the OBR is undertaking to prepare for its new responsibility reporting
on the welfare cap;
· The
value of Fiscal Sustainability Reports;
· The
value of two forecasts a year separated by three to four months;
· The
quality of the forecasts;
· A
potential statutory duty to report interference;
· Whistleblowing
arrangements at the OBR staff level; and
· Promoting
public understanding of the uncertainty surrounding the forecasts.
Conclusions
6. We note that Mr Parker has said that
he intends to serve for about another three years. We draw attention
to the importance of high quality succession planning at the OBR
in order to ensure that there is sufficient expertise among the
three members of the Budget Responsibility Committee at all times.
7. Having considered his oral and
written evidence, and taking into account his previous appearances
before the Treasury Committee, we are satisfied that Graham Parker
has the professional competence and personal independence to be
reappointed as a member of the Budget Responsibility Committee.
We therefore consent to his appointment. We wish him every success
in his continuing role.
4 Office for Budget Responsibility, http://budgetresponsibility.org.uk/about-the-obr/who-we-are/graham-parker/ Back
5
UK STATISTICS AUTHORITY, STEERING GROUP FOR MONITORING REVIEW,
"The Use of Deflators in Official Statistics Publications",
Terms of Reference, 24 April 2014 Back
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