Rachel Reeves has criticized the Budget watchdog for an exceptional leak of crucial Budget details. The Chancellor expressed strong dissatisfaction, labeling the incident a significant mistake by the Office for Budget Responsibility. She highlighted to Members of Parliament that the breach was on their part, and the watchdog has acknowledged responsibility for it.
During her Budget statement introduction, she informed the Commons that the Office for Budget Responsibility had prematurely released its economic and financial outlook on their website before her statement. She described this as deeply disappointing and a serious error on their end, noting that the Office for Budget Responsibility had already issued a statement taking accountability for the breach.
The watchdog apologized for a “technical error” that resulted in the inadvertent publication of the document and announced an investigation into the incident. The leaked document confirmed that the Budget would increase taxes, reaching up to £26 billion in 2029-30. This includes the continuation of freezing personal tax thresholds for an additional three years until 2030-31 and several other tax measures, leading to a record-high tax revenue of 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 Chancellor, visibly upset by the leak, was scheduled to present the Budget to MPs at 12:30 pm, but the release of the economic and fiscal document by the Office for Budget Responsibility occurred before her speech, causing an unprecedented situation.
In response, the Office for Budget Responsibility revised its economic growth forecast for this year from 1% to 1.5% while adjusting the forecasts for the subsequent four years downward. Despite the setback, Rachel Reeves expressed determination to surpass the forecasts once more.
The Office for Budget Responsibility released a statement acknowledging the premature posting of the economic and fiscal outlook document on their website and promptly removed it. They expressed regret for the technical error, initiated an investigation into the incident, and pledged to prevent such occurrences in the future. The full economic and fiscal outlook, along with supporting documents, will be released after the Chancellor completes her speech.