UK Budget: Investigation into pre-Budget leaks now underway with backing from Chancellor Rachel Reeves
Numerous pre-budget leaks upset the markets and damaged investment - it will now be investigated by the Treasury.
An inquiry is now underway into the pre-budget leaks from the Treasury which upset the markets and damaged investment.
The chief secretary to the Treasury James Murray told MPs in the House of Commons on Wednesday evening that an inquiry had been launched. This inquiry will be led by Treasury civil servant James Bowler and has the support of Chancellor Rachel Reeves.
Policies including the freezing of income tax thresholds and a pay-per-mile levy on electric vehicles were reported in the media before the chancellor unveiled her final budget last Wednesday.
Other issues were also briefed to the media, including the Office for Budget Responsibility’s downgrading of UK productivity and a plan to raise income tax rates - this proposal was later dropped.
Economists have since said the pre-budget leaks damaged business investment in the economy and slowed consumer spending.
For example, The Financial Times story confirming the Treasury would not increase income taxes moved the bond markets, which temporarily increased government borrowing costs.
Barclays also said more than half of business leaders delayed investment decisions until after the two-month lead-up to the budget and “hundreds of thousands” of people drew down part of their pension savings prematurely because of pre-budget worries.
Mr Murray told MPs in the Commons: “The government puts the utmost weight on budget security, including prevention of leaks of information.
“A leak inquiry is now underway with the full support of the chancellor and the whole Treasury team.”
Reeves is due to visit Inchgreen dry dock in Greenock on Thursday to discuss the impact of her budget on Scotland.
There have been several calls for the chancellor to resign over the budget, including from First Minister John Swinney.
This comes after Richard Hughes resigned as the chairman of the Office for Budget Responsibility after it accidentally published the budget before the chancellor’s statement.
Dame Meg Hillier MP, the chair of Westminster’s Treasury select committee, said if someone is “found responsible" for the leaks in this inquiry, they should “follow the lead set by Richard Hughes” and resign.
Mr Murray told Dame Meg he would “not speculate on the outcome of the leak inquiry”.
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