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Chancellor Rachel Reeves has expressed her support for an investigation into leaks from the Treasury prior to the Budget announcement, which unsettled both businesses and consumers while influencing market movements. On Wednesday, during a session in the House of Commons, the chief secretary to the Treasury confirmed that an inquiry, led by senior Treasury official James Bowler, is currently underway with the chancellor’s full endorsement.
Several policies, including a freeze on income tax thresholds, the introduction of a pay-per-mile charge for electric vehicles, and a proposed tourist tax, had been reported in the media before the official Budget reveal on 26 November. Additionally, a downgrade of UK productivity figures by the Office for Budget Responsibility and leaked plans to increase income tax rates, which were later withdrawn, also reached the press prematurely.
The leaks drew criticism from Speaker Sir Lindsay Hoyle, who described the event as a “hokey-cokey Budget” and emphasized that government policies should be formally announced to Parliament first. Chief Secretary James Murray reiterated the government’s commitment to maintaining Budget confidentiality, stating: “The government puts the utmost weight on Budget security, including prevention of leaks of information.” He added that Mr Bowler’s role includes examining security procedures to better protect details of future fiscal events. Dame Meg Hillier MP, Chair of the Treasury Select Committee, expressed skepticism about the inquiry’s potential outcomes, commenting on the repeated failure of such investigations to identify culprits, but asked whether any responsible parties would follow precedent and resign if found liable.
The continuous speculation surrounding tax changes and economic forecasts had a noticeable impact on the bond markets, which affect UK borrowing costs. A pre-Budget survey conducted by Barclays revealed that over half of the business leaders polled postponed investment decisions during the two months leading up to the Budget. Mark FitzPatrick, CEO of the FTSE 100 wealth manager St James’s Place, highlighted the wider effects on individuals, noting to Radio 4’s Today programme that “hundreds of thousands” of pension holders withdrew funds early over concerns about the impending Budget. He described the pre-Budget rumors as “unhelpful,” explaining: “The run-up to the Budget this time…there was a lot of speculation…and people act on speculation. The flying of kites is unhelpful when it affects people’s lives.”
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