Overview
- Testifying to MPs, Rachel Reeves called the pre‑Budget briefings unacceptable and very damaging, rejected authorising any leaks, and said an FT report on scrapping income tax rises was partial and inaccurate.
- The Treasury has launched a leak inquiry led by permanent secretary James Bowler that covers ministers, officials and advisers, with the National Cyber Security Centre asked to conduct a forensic examination.
- The Office for Budget Responsibility inadvertently released Budget documents online before the statement, and its chair Richard Hughes has resigned over the error.
- Media claims that improved forecasts enabled a U‑turn on income tax were disputed by OBR economist David Miles, while Reeves said the final decision to avoid rate rises and extend threshold freezes was taken with Prime Minister Keir Starmer.
- Market moves followed the reports, including a gilt sell‑off and a brief rise in government borrowing costs, and the Financial Conduct Authority is awaiting the inquiry’s findings before considering enforcement action.