A coalition of thinktanks has urged Rachel Reeves, Shadow Chancellor of the Exchequer, to reform the Office for Budget Responsibility (OBR) to facilitate a rise in public investment. This comes in the wake of Labour's recent political turbulence, including a defeat by the Greens in a local byelection. The coalition, which includes groups from across the political spectrum, contends that the OBR's current framework is fostering short-termism and contributing to economic instability, which could hinder long-term growth and investment opportunities.

The thinktanks are advocating for a reassessment of the OBR's mandate to better align it with the needs of a changing economy. They argue that the OBR's approach has become outdated and insufficient for addressing contemporary economic challenges. Rachel Reeves is expected to outline Labour's plans during the upcoming spring forecast, indicating a focus on restoring fiscal stability while highlighting signs of a potential economic recovery.

As the Labour Party navigates this tumultuous political climate, the recommendations from the thinktank coalition could play a crucial role in shaping its fiscal policy and investment strategy. By seeking to reform the OBR, Reeves could open the door for more substantial public sector investment, which is seen as essential for addressing long-term social and economic issues, ultimately positioning Labour more favorably in light of recent electoral losses.