UK Government Expands Fiscal Watchdog Powers

The UK government, under Prime Minister Keir Starmer, is introducing legislation to enhance the powers of the Office for Budget Responsibility (OBR) to ensure scrutiny of major tax and spending changes, following past unvetted budget plans that led to economic turmoil. The new 'fiscal lock' will require OBR assessments for significant fiscal events, empowering the watchdog to produce assessments independently. Additionally, plans include nationalizing rail operations and establishing a National Wealth Fund to attract private investment in key sectors like renewable energy, aiming to boost investor confidence and drive sustainable growth in the UK economy.