Details from the Budget have been prematurely revealed before Rachel Reeves presented her financial statement to the Commons. The Chancellor was expected to disclose the Budget to MPs at 12:30 pm, but the Office for Budget Responsibility (OBR) accidentally published its economic and fiscal report, outlining key measures in advance of Ms. Reeves’s address.
Expressing disappointment, Ms. Reeves criticized the leak as a significant mistake on the part of the OBR. The leaked information included tax hikes totaling £26 billion and the elimination of the two-child benefit restriction. The OBR attributed the premature release to a “technical error” and initiated an investigation into the incident.
The leaked document confirmed that tax increases amounting to £26 billion by 2030-31 will be implemented by maintaining personal tax thresholds frozen for an additional three years. Additionally, the two-child benefit cap will be removed starting from April next year, incurring costs of £2.3 billion in 2026-27 and £3 billion in 2029-30.
While the OBR revised its economic growth forecast for the current year from 1% to 1.5%, it downgraded projections for the subsequent four years. Ms. Reeves had previously cautioned against extending the freeze on income thresholds, stating that it would adversely impact working individuals.
In response to the leak, various political leaders raised concerns. Keir Starmer highlighted that the Budget would reflect Labour values and cater to families facing financial concerns. Meanwhile, the OBR issued an apology for the premature disclosure, assuring that the full economic and fiscal outlook report would be released post the Chancellor’s speech.