Chancellor Rachel Reeves will not face an official investigation into accusations she misrepresented the state of the UK's public finances ahead of her recent Budget, it has been confirmed.
Farage's Complaint and the Watchdog's Verdict
Reform UK leader Nigel Farage had formally requested an inquiry, alleging that Ms Reeves had misled voters and potentially committed market abuse. His complaint centred on her repeated claims of a black hole in the public finances exceeding £20 billion, a figure which subsequent analysis from the Office for Budget Responsibility (OBR) suggested did not exist.
In a letter to the independent adviser on ministerial standards, Sir Laurie Magnus, Mr Farage argued that the Chancellor's actions "plainly meet the threshold for investigation." He contended that the British public now faced "the heaviest tax burden in generations" based on what he called a sustained misrepresentation of the fiscal position.
However, Sir Laurie has formally declined to open a case. In his response to Mr Farage, he stated that the matter falls outside his official remit. His role, as defined, is to advise the Prime Minister on the conduct of individual ministers concerning the Ministerial Code.
Scope and Limitations of the Inquiry
Sir Laurie outlined several key reasons for his decision. Firstly, he explained that his position does not allow him to examine the collective actions of government departments or individuals who are not ministers. Secondly, he clarified that questions of market regulation are the statutory responsibility of the Financial Conduct Authority, not his office.
"Given this, I do not see a basis for launching an investigation, as you have suggested, in the context of the provisions of the Ministerial Code," Sir Laurie concluded in his letter.
This ruling means there will be no official probe into whether the Chancellor knowingly presented an inaccurate fiscal picture before announcing tax rises and spending plans.
Political Fallout and Internal Disquiet
The controversy has sparked significant political tension. The Conservative Party has accused Ms Reeves of misleading voters, while reports suggest even some of her own ministerial colleagues feel misled.
A senior figure told The Times: "At no point were the Cabinet told about the reality of the OBR forecasts." This internal disquiet highlights the sensitivity surrounding the pre-Budget economic assessment.
For her part, Chancellor Reeves has dismissed the need for an investigation. In an interview with Channel 4 News, she stated there was no case to answer regarding allegations she misled the markets or taxpayers.
This episode marks another challenging moment for the Chancellor, who was rebuked at the end of October for failing to obtain the necessary licence to rent out her family home. The combination of events has placed her under increased scrutiny as she navigates the UK's complex economic landscape.
