AssetID: 54917656
Headline: UNCAPTIONED: Labour MPs Push to Curb OBR's Power After Welfare Cuts Fallout
Caption: Labour MPs Challenge Fiscal Watchdog After Welfare Spending Row. Influential Labour backbenchers are urging the government to curb the OBR's power after backlash over welfare cuts. Known as the Red Wall group, these MPs represent working-class seats and argue the OBR's forecasts are forcing short-term government decisions. Their call follows pressure on Chancellor Rachel Reeves to cut disability benefits after a bleak OBR forecast. The forecast showed weak tax revenues and rising debt costs, threatening the 2029/30 balanced budget rule. To preserve Labour’s economic credibility, Reeves introduced strict spending rules even before taking office. Now, she faces internal calls to review how the OBR's projections are used. Labour MPs say the OBR ensures discipline but shouldn't hinder policymaking in areas like healthcare and infrastructure. The group seeks fewer OBR reports and less dependence on their economic models, aiming for more balanced and strategic policy decisions. Their position reflects growing tension between maintaining fiscal responsibility and delivering policy ambitions promised to voters. Debate continues over how the OBR should shape government priorities as Labour navigates economic challenges and internal party demands. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,Labour,OBR,welfare cuts,Rachel Reeves,fiscal rules,Red Wall MPs,economic forecasts,disability benefits,UK government,budget policy,UK,Britain,Politics News,News,Politics
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