The Chancellor's first major budget was thrown into disarray after key documents were leaked almost an hour before she was due to address the House of Commons. The premature release has triggered a major investigation and significant political embarrassment.
Unprecedented Security Breach
Richard Hughes, the Chair of the Office for Budget Responsibility (OBR), stated he felt "personally mortified" by the incident. He revealed that the OBR's crucial Economic and Fiscal Outlook document became accessible from outside the organisation approximately 45 minutes before Chancellor Rachel Reeves began her speech.
Hughes explained that the leak did not occur through the official publication on the OBR's webpage. Instead, it appears an external link was compromised, allowing someone unauthorised to access the sensitive fiscal forecasts and policy details. He has since apologised to both the Chancellor and Meg Hillier, the chair of the Treasury select committee, for "letting people down."
High-Profile Investigation Launched
In response to the serious breach, an investigation has been launched with input from a leading cybersecurity expert. Ciaran Martin, the former chief executive of the National Cyber Security Centre, will provide his expertise to the inquiry.
Hughes expects the investigation to report its findings "very swiftly" by early next week. He has taken full responsibility, stating he is prepared to resign if the Chancellor and the Treasury committee lose confidence in his leadership as a result of the probe.
Despite the leak, Chancellor Reeves publicly backed Hughes, acknowledging the seriousness of the incident but confirming she retains confidence in him and the OBR.
Political Fallout and Calls for Reform
The early disclosure caused significant disruption to the parliamentary process, with details of £26bn in tax rises and other key policies becoming public before the official announcement. The incident has also cast a spotlight on the sometimes fraught relationship between the Treasury and the independent OBR.
Mel Stride, the shadow chancellor, described the leak as "unprecedented and deeply worrying." While he believes the OBR is generally fit for purpose, he stated that the watchdog "needs reform."
In her budget, Chancellor Reeves announced a change to the OBR's remit, stating it would now assess whether her fiscal rules are met once a year at the annual budget, rather than alongside the spring statement.
