In an unprecedented political blunder, key details of the UK government's Budget were released prematurely on Wednesday 26 November 2025, revealing significant tax increases and downgraded economic growth forecasts.
Economic Forecasts Take a Hit
The Office for Budget Responsibility confirmed that the UK economy will grow more slowly than previously expected over the coming years. While this year's growth forecast saw an improvement from 1% to 1.5%, subsequent years paint a bleaker picture.
The OBR substantially downgraded its projections for future growth: from 1.9% to 1.4% in 2026, from 1.8% to 1.5% in 2027, from 1.7% to 1.5% in 2028, and from 1.8% to 1.5% in 2029.
Substantial Tax Increases Confirmed
Chancellor Rachel Reeves's Budget includes significant tax measures that will see revenues increase substantially over the coming years. According to the leaked OBR document, the government's plans "raise taxes by amounts rising to £26 billion in 2029-30".
The tax increases will be achieved primarily through freezing personal tax thresholds, alongside numerous smaller measures that collectively represent one of the largest tax rises in recent years.
Political Fallout and Economic Implications
The early publication of these sensitive documents by the OBR represents a significant embarrassment for the Treasury and raises questions about Budget security procedures. The leaked forecasts provide the opposition and public with advance insight into the government's economic strategy.
Economists are particularly concerned about the combination of rising taxes and slowing growth, which could put additional pressure on household finances and business investment during a period of economic uncertainty.
The full impact of these measures will become clearer when the Chancellor delivers the official Budget statement, but the leaked information already suggests challenging times ahead for the UK economy.
