Reeves requests Treasury investigation into Budget leaks

Chancellor Rachel Reeves has initiated a formal investigation into the source of leaks regarding her Budget plans that appeared in the media before being presented to Members of Parliament. There is speculation that the leaks may have come from within her own team.

James Murray, the Treasurys Chief Secretary, confirmed in the House of Commons that a leak inquiry is now underway, with full support from the Chancellor and the entire Treasury team.

The leaks, which included potential increases to income tax, drew criticism from Sir Lindsay Hoyle, Speaker of the House of Commons, after key Budget measures were reported online ahead of the official announcement on November 26. One early report in the Financial Times on November 13 revealed that a planned income tax rise had been abandoned, which briefly impacted bond markets and increased government borrowing costs.

While the Treasury has not specified which leak is under investigation, the reversal of the income tax plan attracted the most attention leading up to the Budget. It was reportedly intended by the Chancellor as a key surprise to win voter support. Observers suggested that some within her circle might have wanted to ease public concerns by preemptively dismissing an unpopular tax rise.

Economic analysts have noted that the repeated leaks undermined business and market confidence. After the Budget announcement, reports indicated that thousands of individuals made significant financial decisions, including altering pensions and investments, based on speculative media reports.

Senior Treasury officials admitted to internal unease, noting that many measures were published in newspapers before the official Budget. There were jitters all around, one source said. People were asking: Was that us? Everyone agreed this was not the usual procedure.

Sir Lindsay Hoyle formally complained about the leaks, describing the Treasurys culture of premature disclosures as appalling and harmful to parliamentary principles. He emphasized that running a Budget should not resemble conducting opinion polls.

The Treasury traditionally tests public and market reactions to potential Budget measures through controlled leaks, a practice informally known as pitch-rolling or kite-flying. Recent leaks included plans to reduce energy costs by removing green levies and introducing taxes on electric vehicles. The full Budget was mistakenly published by the Office for Budget Responsibility (OBR) less than an hour before Reeves official statement, leading to the resignation of OBR chairman Richard Hughes.

Further tension emerged between the Treasury and OBR over suggestions of a non-existent black hole in public finances. In response, Mr. Murray stated that the Treasury would work closely with the OBR to ensure robust security arrangements are in place for all future forecasts. He added that the permanent secretary would review the departments security protocols to strengthen safeguards for future fiscal events.

Dame Meg Hillier, chair of the Treasury select committee, questioned whether any officials would face consequences if found responsible for the leaks, highlighting concerns that such inquiries often fail to identify individuals. Mr. Murray affirmed that the Government takes our obligations to this House very seriously.

Author: Zoe Harrison