Rachel Reeves criticizes the Budget watchdog for an unprecedented leak of crucial Budget details. The Chancellor expressed frustration over a “serious error” made by the Office for Budget Responsibility, labeling it as “deeply disappointing.” Reeves pointed out to lawmakers that it was the watchdog’s breach, for which they have accepted responsibility.
During her Budget statement, Reeves informed the Commons that the Office for Budget Responsibility had prematurely released their economic and financial outlook on their website before her speech. She described this as a significant mistake on their part, with the watchdog already issuing a statement taking full blame for the breach.
The Office for Budget Responsibility apologized for a “technical error” that resulted in the inadvertent publication and confirmed an investigation into the incident. The leaked document revealed that the Budget would increase taxes by up to £26 billion in 2029-30, mainly through freezing personal tax thresholds until 2030-31, despite concerns raised by Reeves about the impact on working individuals. The OBR projected that this would raise the tax revenue to a record 38% of GDP in 2030-31.
Additionally, the document disclosed the removal of the two-child benefit limit starting from April next year, costing £2.3 billion in 2026-27 and £3 billion in 2029-30. The OBR adjusted its economic growth forecast for the current year from 1% to 1.5% but revised down projections for the subsequent four years. Reeves pledged to surpass these forecasts.
The OBR explained in a statement that a link to their economic and fiscal outlook document was prematurely live on their website, which has since been rectified. They expressed regret over the technical error and assured that steps were being taken to investigate and prevent such incidents in the future. The full economic and fiscal outlook documents would be released after the Chancellor’s speech.
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