Westminster was plunged into a dramatic sense of déjà vu today as a major Budget leak left Labour Chancellor Rachel Reeves red-faced, starkly echoing a historical blunder that forced her predecessor, Hugh Dalton, to resign in 1947.
A Tale of Two Chancellors: Separated by Decades, United by Leaks
This afternoon's fiscal plans were thrown into disarray when the Office for Budget Responsibility (OBR) mistakenly released its full assessment of Rachel Reeves's proposals a full half-hour before she was due to stand up in the House of Commons. The premature publication forced the Chancellor into an deeply uncomfortable position before she had even begun her speech.
This modern-day fiasco instantly drew comparisons to one of the most infamous moments in British political history. On the day of his Budget speech in 1947, Labour Chancellor Hugh Dalton carelessly revealed key details of his financial plans to a journalist from the evening newspaper, The Star, while walking to Parliament.
The 1947 Resignation That Haunts Westminster
The circumstances of Dalton's leak were a perfect storm of misfortune and indiscretion. With the Commons chamber destroyed in the Blitz, MPs were sitting in the House of Lords, meaning Dalton had to walk directly past reporters. Compounding the error, his key aide, Douglas Jay, was absent, having been sent ahead to ensure a glass of water was ready at the dispatch box.
To journalist John Carvel, Dalton divulged crucial points: '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.' This information was published in that evening's papers around 20 minutes before Dalton began his address to MPs.
The fallout was swift and severe. Prime Minister Clement Attlee was furious, later criticising Dalton by saying, 'He always liked to have a secret to confide to somebody else to please him.' The following day, Dalton returned to the Commons to resign in shame, offering his 'deep apologies to the House' for his 'indiscretion'.
Modern Echoes and a £30 Billion Tax Revelation
While a resignation is not on the cards for the current Chancellor, the embarrassment is palpable. The documents accidentally released by the OBR today revealed that tax is due to rise by £30 billion by 2030-31, with income tax thresholds frozen for another three years. This move is projected to drag a quarter of the working population into higher or top-rate tax brackets, pushing the UK's tax burden to a record high.
This directly contradicted a pledge Rachel Reeves made just 12 months ago, when she explicitly promised not to prolong the freeze because it hurts 'working people'. When she finally rose to speak after the leak, Ms Reeves defended her position by telling the House she was asking everyone to 'contribute'.
The parallel between these two events, separated by 77 years, underscores the immense pressure and scrutiny surrounding the UK's Budget and the heavy price of a lost secret.
