Richard Hughes, chair of the Office for Budget Responsibility, has resigned following an internal inquiry that described the early release of a budget document as the 'worst failure' in the watchdog's history. Hughes said he took 'full responsibility' for the error, which threw Chancellor Rachel Reeves's budget into chaos and sparked days of political recriminations.
Prime Minister Keir Starmer criticised the OBR for the 'serious error', calling it a breach of market-sensitive information and a 'massive discourtesy' to parliament. However, he notably stopped short of expressing confidence in Hughes, while attempting to shore up Reeves's position in a major speech on Monday outlining the government's economic plans.
Opposition leaders seized on the resignation to pressure Reeves. Conservative leader Kemi Badenoch accused the chancellor of using Hughes as a 'human shield', while SNP deputy leader Pete Wishart questioned why Reeves had not followed Hughes's example. Government insiders dismissed the comparisons, calling Tory defence of the OBR 'laughable and totally unserious'.
The controversy stems from claims that Reeves misled the public by citing a hole in the public finances to justify tax rises. The government denies this, with Starmer arguing that the OBR's productivity downgrade left a £16bn shortfall, making revenue-raising inevitable. He defended the budget as 'the right steps for our country', citing cuts to energy bills, frozen rail fares and a minimum wage boost.
Starmer acknowledged tough decisions ahead, including closer ties with the EU and welfare reform. The OBR's rapid investigation, led by former National Cyber Security Centre chief Ciaran Martin, confirmed the leak as the worst breach in its history, prompting Hughes's departure.
