Richard Hughes, chair of the Office for Budget Responsibility (OBR), has resigned following a damning internal inquiry into the premature release of budget documents, which described the incident as the "worst failure" in the watchdog's history. Hughes stated he took "full responsibility" for the error, which threw Chancellor Rachel Reeves's budget into chaos.
Prime Minister Keir Starmer had notably refrained from expressing confidence in Hughes, criticising the OBR for a "serious error" that breached market-sensitive information and was a "massive discourtesy" to parliament. The resignation comes amid ongoing recriminations over the budget, now in their fifth day.
Opposition leaders have sought to draw a contrast between Hughes's resignation and Reeves's refusal to step down. Conservative leader Kemi Badenoch accused the chancellor of using Hughes as a "human shield," while SNP deputy leader Pete Wishart questioned why Reeves would not follow suit. Government insiders dismissed the comparison, calling it "laughable and totally unserious."
In a speech on Monday, Starmer defended the budget and attempted to secure Reeves's position, acknowledging the challenges ahead. He stated that the OBR's productivity downgrade left the government with a "starting point" of £16bn less, necessitating revenue-raising measures. Starmer denied misleading the public, saying he was proud of the budget's steps to tackle the cost of living.
The OBR's investigation, assisted by former National Cyber Security Centre chief Ciaran Martin, found the leak to be the worst failure in its history. Hughes's departure is intended to draw a line under tensions, but the chancellor remains under pressure from critics accusing her of misleading the public over the state of public finances.
