Chancellor Withholds Backing for Watchdog Chief
Chancellor Rachel Reeves has pointedly refused to guarantee the future of Richard Hughes, the head of the UK's independent fiscal watchdog, the Office for Budget Responsibility (OBR). The move comes amid significant Treasury anger over a major Budget leak and subsequent revelations about when Ms Reeves was informed there was no substantial hole in the public finances.
Timeline of Events and a 'Serious Breach'
The controversy deepened when a letter from the OBR to MPs was published on Friday, spelling out the exact timetable of forecasts provided to the Chancellor as she prepared her Budget package. This letter revealed that Ms Reeves had been advised by the OBR that the forecasts were, in fact, projecting a small surplus, even as she publicly talked up the severity of the problems in the government's books.
This disclosure prompted a rare public rebuke from the Treasury, which stated it had been assured that such sensitive information would not 'usually' be made public in the future. The situation was further inflamed by last week's extraordinary Budget leak, which saw confidential documents published online before Ms Reeves had even begun her speech in the House of Commons.
Mr Hughes himself said he was 'mortified' by the leak and had previously stated he would resign if he lost the confidence of both the Chancellor and the Commons Treasury Committee.
Lukewarm Support and Pending Report
When questioned directly about the fate of the OBR chief, Chancellor Reeves offered only tepid support. She emphasised her general backing for the OBR but stopped short of endorsing its current chairman.
'Look, there is no one who is a bigger supporter of the office for Budget Responsibility than me,' Ms Reeves told Sky News' Sunday Morning With Trevor Phillips. 'I reappointed Richard Hughes in the summer to strengthen the powers of the OBR. We will get a report tomorrow.'
She acknowledged the gravity of the leak, calling it a 'serious breach of protocol,' but deferred any definitive action until after reviewing the report due on Monday. A Treasury spokesman, commenting after the OBR letter's publication, reiterated that the government 'takes Budget security extremely seriously' and welcomed the OBR's confirmation that publishing such details would not become standard practice.
