Britain's independent budget watchdog has declared a significant security lapse, which saw its crucial pre-budget report leaked online, the "worst failure" in its history. The Office for Budget Responsibility (OBR) confirmed its Economic and Fiscal Outlook was accessible nearly an hour before Chancellor Rachel Reeves began her budget address last Wednesday.
Investigation Uncovers Systemic Leadership Failings
An internal investigation, led by OBR chief of staff Laura Gardiner and former National Cyber Security Centre head Ciaran Martin, placed the blame squarely on the organisation's leadership over many years. The probe found that a pre-existing weakness in procedures was the root cause.
The report concluded that pressure on a small team to publish a substantial document and associated data immediately after the Chancellor sat down led to the use of a "pre-publication facility." This common tool created a vulnerability that was not properly configured or secured.
In a damning admission, the OBR also revealed that a similar, though less severe, breach occurred earlier this year. Its March report, published alongside the spring statement, was accessed five minutes into the Chancellor's speech after being uploaded online prematurely.
Damage to Reputation and Political Fallout
The early release of the document, which contained all key announcements on taxes, growth, and policy changes, caused significant political embarrassment. It led to mockery and anger among MPs in Parliament as details circulated before the official speech.
OBR chairman Richard Hughes wrote to both Chancellor Rachel Reeves and Treasury Select Committee chair Meg Hillier to apologise, stating he was "mortified." He indicated he would resign if he lost their confidence. Initially, Hughes had suggested an "external person" may have accessed the link prematurely, but the investigation pointed to internal failings.
The watchdog's statement was unequivocal: "We are in no doubt that this failure to protect information prior to publication has inflicted heavy damage on the OBR’s reputation." It has pledged a full audit and improvement of its systems.
Broader Responsibility and Historical Context
The report also suggested that the Treasury and the Cabinet Office should share some responsibility, as they maintain IT systems that lacked the security needed to prevent unregulated external access.
The OBR was established in 2010 by then-Chancellor George Osborne to provide independent economic forecasts, moving this function out of the Treasury itself. Its role is to project inflation, unemployment, growth, and the impact of government fiscal policy over a five-year horizon.
Separately, Chancellor Rachel Reeves has defended her budget decisions, denying misleading the public and insisting that raising taxes to a record level was necessary to ensure long-term economic stability.
