S7 Ep3: Making a responsible budget with Sir Robert Chote

Key takeaways

The IFS and OBR play crucial roles in providing independent and transparent assessments of UK economic policy.
Transparency and clear communication are essential for building public trust in economic institutions.
Economic growth requires a long-term view that includes investment in infrastructure and education.
Political pressures can challenge the independence of economic institutions, making their role all the more important.
A holistic approach to economic policy can lead to more effective and sustainable outcomes.

Summary

The Role of IFS and OBR in Economic Policy

The podcast begins by discussing the significance of the Institute for Fiscal Studies (IFS) and the Office for Budget Responsibility (OBR) in shaping economic policy in the UK. Host Will Hutton introduces Sir Robert Chote, who has extensive experience leading both institutions. Chote emphasizes the importance of independence and non-partisan analysis in assessing government economic plans, highlighting the challenges they faced during various administrations.

Challenges and Critiques of Independent Institutions

Chote reflects on criticisms that the IFS and OBR have faced, including accusations of being too conservative or overly cautious in their forecasts. He explains the need for these institutions to provide robust analysis amidst political pressures and the complexities of economic forecasting, especially following events like Brexit.

Importance of Transparency in Economics

A significant theme of the conversation is the value of transparency in economic reporting. Chote advocates for clear communication and the necessity of showing the workings behind economic forecasts to build public trust. He underscores the impact that proper handling of data has on policy-making and public perception.

Long-term Approach to Economic Growth

Chote discusses the importance of viewing economic growth from a long-term perspective rather than focusing solely on immediate outcomes. He emphasizes the necessity of investments in infrastructure and education and how these elements contribute to sustainable economic development.

The Future of Economic Policy Making

In the latter part of the podcast, Chote explores potential directions for UK economic policy, stressing the need for courageous leadership that embraces innovative approaches to development. He advocates for a holistic approach that considers various aspects of economic and social policy, moving beyond short-term fixes.

Show notes

The Institute for Fiscal Studies - or IFS - has become the nation’s go to institution for judgements about tax, spending and borrowing. And the Office for Budget Responsibility – the OBR – is the independent official watchdog that assess the viability and sustainability of the government’s economic plans.

Our guest today, Sir Robert Chote has run both organisations and knows better than anyone on the planet how they both work. He now heads the UK Statistics Authority.

Season 7 of the We Society Podcast from the Academy of Social Sciences continues to tackle the big questions through a social science lens. Throughout this series, you'll be hearing some of the best ideas to shape the way we live.

Hosted by journalist and Academy President Will Hutton, we interview some of Britain’s top social scientists and public figures from across the globe to explore their evidence-led solutions to society’s most pressing problems.

Don't want to miss an episode? Follow the We Society on your favourite podcast platform and you can email us on wesociety@acss.org.uk and tell us who we should be speaking to or follow us on X https://twitter.com/AcadSocSciences

This is the first episode of Season 7, and there will be episodes released every week so be sure to subscribe and rate the podcast.

Find out more about the Academy of Social Sciences here: https://AcSS.org.uk