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Central Finance and Treasury

Examination of the forecasts prepared by the Office for Budget Responsibility for 29 November 2010

The Chancellor has requested that the C&AG undertake an examination with following scope: To consider whether key economic and fiscal assumptions underpinning the Office for Budget Responsibility’s forecasts were independently arrived at.

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This report considers the OBR’s forecasts published 29 November 2010. The scope is the same as C&AG’s previous examination looking at the forecasts that the interim OBR undertook for the Budget on 22 June 2010. The scope of these assessments differs from requests by previous Chancellors which asked the C&AG to examine the reasonableness and caution underpinning projections of the public finances. The remit of this work does not include any review of the forecast itself or of specific underpinning assumptions.

December 2010