Chancellor George Osborne established the OBR in May to provide independent analysis of the public finances, government borrowing and other economic data. Osborne said the aim was to stop ministers manipulating data and forecasts for political purposes.
But he was dealt a swift blow after Budd (pictured) revealed he would be leaving after just three months in the job.
However, the appointment of Chote should silence critics who question the OBR’s independence. Chote has challenged the Treasury on several occasions and last month spearheaded the Institute’s attack on the austerity budget claiming it was definitely "not progressive."
Commentator’s speculated whether Chote’s antagonistic approach would scupper his chances of being appointed head of the OBR, but Osborne welcomed his appointment and said he as "one of the most credible independent voices on the public finances."
The former journalist and economist’s appointment remains subject to approval by the Treasury Select Committee, which will grill him at a hearing to be held in the coming weeks.
Chote, who was widely tipped to head up the OBR, said he was delighted at the appointment. He said: "I will ensure that the OBR draws on the fullest possible range of information and expertise, from within the government and without, and that we will make and present our judgements without fear or favour."