The Treasury has initiated a formal investigation into significant security breaches that led to sensitive details of the Budget being leaked to the media ahead of schedule. The inquiry, confirmed by a Treasury minister with the Chancellor's full backing, will be led by the department's permanent secretary, James Bowler.
Unprecedented Breaches and Political Fallout
The series of leaks culminated in the unprecedented early publication of a crucial document from the Office for Budget Responsibility (OBR). The OBR's economic and fiscal outlook, which analyses all Budget policies, was released hours before the official statement last week. This major security lapse followed a string of other disclosures, including briefings to the press suggesting the Chancellor might increase the headline rate of income tax, only for subsequent leaks to indicate the hike was off due to improved forecasts.
Commons Speaker Sir Lindsay Hoyle branded it the "hokey-cokey Budget" due to the confusing series of revelations. Chief Secretary to the Treasury, James Murray, told the Commons the government places "the utmost weight on Budget security, including the prevention of leaks of information." He stated the Bowler-led inquiry would scrutinise security processes to inform future fiscal events.
OBR Chief Resigns Amidst the Chaos
The fallout from the leaks has been severe. Richard Hughes, the chair of the independent OBR watchdog, resigned on Monday over the inadvertent early release of the fiscal outlook document. Answering an urgent question in the Commons on Wednesday, Mr Murray paid tribute to the outgoing OBR chief. He pledged the Government would "work closely with the OBR to ensure that robust security arrangements are in place" before the spring forecast and all future publications.
Mr Murray also sought to counter claims of ministerial displeasure with the OBR. This speculation arose after a letter from the watchdog to the Treasury Committee of MPs last week led to accusations that Chancellor Rachel Reeves had "misled" voters about the state of public finances. The OBR's letter detailed the timing of its pre-measures forecasts, suggesting the Chancellor was aware of a small forecast surplus when she delivered her speech on 4 November.
Inquiry Scope and Pressure for Accountability
Addressing the Commons, Mr Murray stated: "The Chancellor was aware of that letter and was content for it to be published, and she agreed that with the permanent secretary." Meanwhile, pressure mounted regarding the scope of the leak inquiry and whether it would lead to further resignations.
Dame Meg Hillier, the Labour chairwoman of the Treasury Committee, pressed the issue, noting: "Leak inquiries have a habit of not finding someone responsible. But if somebody is found responsible, will they follow the lead set by Richard Hughes?" In response, Mr Murray declined to "speculate on the outcome of the leak inquiry", but reiterated that the Government takes its obligations to Parliament very seriously. The investigation now underway seeks to plug the leaks that have severely undermined the confidentiality of one of the government's most important set-piece events.
