The TUC is calling on Chancellor John Healey to order a comprehensive review of the Office for Budget Responsibility, arguing that its economic modelling discourages investment and weakens growth. The union says the OBR assumes public investment displaces private capital, rather than attracting it, and claims this reflects outdated austerity-era thinking.

The TUC wants the review considered ahead of Healey’s first budget on 28 October and is also urging greater use of government-backed investment bodies. It says the National Wealth Fund and National Housing Bank could invest more under existing fiscal rules, including in projects taking up to 15 years to generate returns. Jonathan Haskel, the incoming OBR chair, has warned of higher interest rates, weaker GDP growth and a difficult fiscal position.