Chancellor Rachel Reeves has condemned leaks ahead of her make-or-break budget as “unacceptable”, telling MPs that much of the speculation was inaccurate. Appearing before the Commons Treasury committee, Reeves said the budget had been marred by “too many leaks” that were “very damaging”.
Reeves revealed that her decision to abandon a planned income tax rise was taken “in close partnership” with Prime Minister Keir Starmer, whom she met two to three times a week before the budget. She said they had considered increasing income tax rates but found other tax measures raised sufficient revenues, making the rise unnecessary.
The chancellor also addressed the resignation of Office for Budget Responsibility (OBR) chair Richard Hughes, who quit after budget documents were inadvertently released early. Reeves said a replacement was unlikely before her spring statement, and that both the Treasury and OBR are conducting leak inquiries.
Reeves left almost £22bn of headroom against her fiscal rule in the autumn budget and scrapped an OBR verdict on whether the target was still being met in the spring. She said she reserved the right to introduce fresh tax increases or spending cuts if the public finances deteriorate, but downplayed the likelihood of action in the spring.
The chancellor ruled out charging capital gains tax on primary residences and scrapping the pensions triple lock in the current parliament. She also said the government would introduce legislation as soon as possible to enact tax changes, including a council tax surcharge on properties over £2m and a 3p-a-mile levy on electric vehicles.
