Chancellor Rachel Reeves has denounced the unauthorised leaks that emerged ahead of her crucial budget, describing them as unacceptable and very damaging as she defended her decisions before MPs on the Commons Treasury Committee.
Reeves said she had been frustrated by widespread speculation and inaccurate briefings in the run-up to her November statement, insisting none had been authorised.
She also raised concerns over associated IT security issues, saying they contributed to confusion about the government’s fiscal plans.
Much of the speculation centred on a possible income tax rise, after Reeves delivered a major speech hinting at the need to raise revenues to address weaknesses in the public finances.
However, the Financial Times later reported that the proposal had been dropped, sparking turbulence in the bond market as investors reacted to the apparent policy reversal.
Addressing the issue, Reeves confirmed she and Prime Minister Keir Starmer had indeed considered raising income tax but ultimately decided against it once revised forecasts and alternative tax measures provided sufficient revenue.
“We decided it together as a team,” she said, adding that she met with the prime minister several times a week while preparing the budget.
The Chancellor also commented on the resignation of Richard Hughes, chair of the Office for Budget Responsibility, who stepped down after taking responsibility for the inadvertent early release of OBR documents just minutes before Reeves delivered her budget. She said his replacement would likely not be in place before the spring statement.
