Richard Hughes, chair of the Office for Budget Responsibility, has resigned following an internal inquiry that described the premature release of a budget document as the 'worst failure' in the watchdog's history. Hughes said he took 'full responsibility' for the breach, which has sparked five days of political recriminations over Chancellor Rachel Reeves's budget.
Prime Minister Keir Starmer had notably refrained from expressing confidence in Hughes, criticising the OBR for a 'serious error' that he called a breach of market-sensitive information and a 'massive discourtesy' to parliament. While ministers hope the resignation will ease tensions, Reeves remains under fire from opposition leaders who accuse her of misleading the public about the state of public finances.
Conservative leader Kemi Badenoch said: 'Someone has resigned as a result of the budget chaos … but it isn't Rachel Reeves. The chancellor is trying to use the chair of the OBR as her human shield.' SNP deputy leader Pete Wishart echoed the sentiment, asking why Reeves refuses to follow Hughes's example. Government insiders dismissed the comparison as 'laughable and totally unserious'.
In a speech outlining economic plans, Starmer defended the budget, saying the OBR's productivity downgrade left a £16bn shortfall, making tax rises inevitable. He denied misleading the public, stating that the decision not to increase income tax rates came after it became clear priorities could be met without breaching manifesto commitments.
Starmer acknowledged significant challenges ahead, including the need for closer ties with the EU and welfare reform. The OBR's investigation, led by former National Cyber Security Centre chief Ciaran Martin, described the leak as a serious failure of information handling.
