The UK's independent fiscal watchdog has revealed it confronted the Treasury over a series of what it deemed "unhelpful" policy leaks in the run-up to Chancellor Rachel Reeves's Budget statement last week.
Watchdog's Formal Complaint Over Briefings
The Office for Budget Responsibility (OBR) expressed its concerns directly to the Treasury, its committee member Professor David Miles told MPs on the Treasury Select Committee on Tuesday 2 December 2025. While no formal complaint was lodged, the OBR made it clear that the volume of information appearing in the press ahead of the formal announcement was not helpful to its process.
Professor Miles stated that the watchdog was "obviously aware that information seemed to be getting into the press" and that this level of briefing "wouldn't normally be out there". He confirmed the OBR had made its displeasure known to Treasury officials.
Leaks and U-turns Blamed for Stalling Growth
The revelation follows stark criticism from former Bank of England chief economist Andy Haldane. He told the BBC's Sunday with Laura Kuenssberg that the pre-Budget briefings and subsequent policy U-turns on issues like income tax were "the single biggest reason why [economic] growth has flatlined".
The controversy unfolds against a dramatic backdrop, coming just a day after OBR chairman Richard Hughes resigned abruptly. His departure followed a critical report into how the watchdog itself had accidentally released Budget details 40 minutes early.
Reeves's Position Under Scrutiny
Simultaneously, Chancellor Rachel Reeves faces mounting pressure over her own future. She is confronting allegations that she deliberately withheld data from the OBR which showed an expected spending shortfall had been filled by higher-than-anticipated tax receipts.
Professor Miles also addressed Reeves's unusual pre-Budget speech on 4 November, viewed by many as an attempt to prepare the ground for significant tax rises. He said the Chancellor's portrayal of a "very difficult Budget" was not inconsistent with the OBR's final assessment, which showed just £4.2 billion of "wafer thin" headroom against her fiscal rules.
The evidence session coincided with a new warning from the OECD. The international organisation forecasts that following Ms Reeves's Budget, expectations for UK economic growth have been downgraded while unemployment is likely to rise.
