Policy paper

Memorandum of Understanding between the OBR and HMT – macroeconomic models

This document is a Memorandum of Understanding, agreed between the Office for Budget Responsibility (OBR) and HM Treasury to cover their shared macroeconomic models.

• From: HM Treasury
• Published: 10 April 2025

Documents

Memorandum of Understanding (PDF)

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Details

The macroeconomic models memorandum of understanding establishes a framework for the joint governance, management and development of the OBR and HMT’s shared macroeconomic models. It does not constitute a legally binding agreement.

One of the models covered by the MOU is the large-scale macroeconomic model for the production of the economic forecast. The model was originally designed and developed by the Treasury, but is now jointly maintained and developed by the Treasury and the OBR.

The OBR was set up in 2010 under the Budget Responsibility and National Audit Act, with responsibility for examining and reporting on the sustainability of public finances. The OBR provides forecasts on which the government can base its fiscal and economic policies, and in turn, will use information from across government to produce its forecasts and related analysis. As such, for the OBR and the rest of government to perform their respective functions effectively, close working is essential. Further information about the OBR can be found on the OBR website.

Published 10 April 2025