The apparent leak of George Osborne's entire budget to the London Evening Standard is an uncanny echo of the most famous budget press leak in British history. That happened in 1947 when the then Labour chancellor, Hugh Dalton, revealed key budget details to the Star, a now defunct evening paper, which were published before Dalton began his speech.
The Dalton leak led to his resignation a day later and established an informal Whitehall rule that no unauthorised domestic policy revelation was more serious than a budget leak. On his way into the Commons chamber before the budget in November 1947, Dalton indiscreetly told the Star's John Carvel: 'No more on tobacco; a penny on beer; something on dogs and pools but not on horses; increase in purchase tax, but only on articles now taxable; profits tax doubled.' Carvel's story was on the streets approximately 20 minutes before Dalton began speaking.
Initially, it appeared Dalton would not suffer for his indiscretion, though he immediately offered his resignation to Prime Minister Clement Attlee. Attlee, who rarely gave interviews and never briefed the press, was astounded. 'Talked to the press?' he said when his adviser Francis Williams explained the facts. 'Why on Earth did he want to talk to the press?'
The day after the budget, Dalton apologised to the Commons for his 'grave indiscretion'. Winston Churchill, then leader of the opposition, offered sympathy and commended Dalton's 'very frank manner'. Later that evening, Dalton offered his resignation again, and this time Attlee accepted it. Dalton was replaced by Sir Stafford Cripps.
In retirement, Attlee was more forthcoming about the incident. 'Perfect ass,' he said of Dalton in a Granada TV interview. 'His trouble was that he would talk. He always liked to have a secret to confide to somebody else to please him. He did it once too often.' The Dalton leak would probably never have happened but for two unusual factors: MPs still sat in the House of Lords chamber in 1947 because the Commons was being rebuilt, forcing the chancellor to walk past lobby journalists; and Dalton's political minder Douglas Jay had been sent ahead to check for a glass of water at the dispatch box.
