Chancellor Rachel Reeves has backed a formal investigation into a series of pre-Budget leaks from the Treasury that unsettled markets and dented business and consumer confidence.
The chief secretary to the Treasury told MPs on Wednesday that an internal inquiry, led by permanent secretary James Bowler, is now underway and has “the full support of the chancellor”. The review will examine how sensitive information was handled in the run-up to the 26 November Budget and assess the security processes surrounding future fiscal events.
In the days leading up to the statement, several key policies were reported in the press. These included a continued freeze on income tax thresholds, a possible pay-per-mile charge for electric vehicles, and the introduction of a tourist tax. Reports also emerged of a potential rise in income tax rates, which were later dropped, and an expected downgrade to UK productivity by the Office for Budget Responsibility.
Speaker Sir Lindsay Hoyle sharply criticised the volume of leaks and reminded ministers that Parliament should be the first to hear policy announcements.
Appearing before MPs, Treasury minister James Murray said the Government places “the utmost weight on Budget security” and would not speculate on the inquiry’s outcome. Committee chair Dame Meg Hillier questioned whether anyone found responsible should resign, referencing the recent departure of OBR chair Richard Hughes. Hughes stepped down after a Budget day error that saw an official document released early, confirming several measures before Reeves addressed the Commons.
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