Cameron rebuked over austerity claims Robert Chote, the head of the OBR, contradicted a claim Mr Cameron made this week in a speech about the economy, in which the Prime Minister said the forecaster does not believe cuts are reducing growth. In fact, as Mr Chote wrote, the OBR believes that cuts in spending and increases in tax will depress economic activity, meaning lower growth. He denied that Coalition policies are responsible for low growth, saying: "They absolutely clear that the deficit reduction plan is not responsible; in fact, quite the opposite." Mr Chote today wrote to Mr Cameron contradicting that statement, saying that the forecaster, like other economists, believe that "fiscal consolidation" puts a short-term squeeze on economic growth. For the avoidance of doubt, I think it is important to point out that every forecast published by the OBR since the June 2010 Budget has incorporated the widely held assumption that tax increases and spending cuts reduce economic growth in the short term.