Rachel Reeves has criticized the Budget watchdog for a significant leak of crucial Budget details. The Chancellor expressed dismay over a serious error made by the Office for Budget Responsibility, calling it deeply disappointing. Reeves highlighted to MPs that the breach was on their part, for which the watchdog has taken responsibility.
During the Budget statement, Reeves informed the Commons that the Office for Budget Responsibility’s economic and financial outlook had been prematurely released on their website before her speech. She described this as a serious error and expressed disappointment in the watchdog, which has acknowledged the breach in a statement.
The Office for Budget Responsibility apologized for a technical error that led to the accidental publication and initiated an investigation into the incident. The Chancellor, visibly upset and seen checking her phone during Prime Minister’s Questions, was scheduled to present the Budget to MPs at 12:30 pm. However, the OBR unintentionally released its economic and fiscal document, including key Budget measures, before Reeves’s address.
According to the document, the Budget will increase taxes by up to £26 billion in 2029-30 by freezing personal tax thresholds for another three years until 2030-31. This move, despite Reeves’ concerns about its impact on working people, is expected to raise the tax take to 38% of GDP in 2030-31, an all-time high.
The document also confirmed the removal of the two-child benefit limit from April next year, costing £2.3 billion in 2026-27 and £3 billion in 2029-30. The OBR revised its economic growth forecast for this year from 1% to 1.5% but downgraded projections for the following four years. Reeves pledged to surpass these forecasts.
The Office for Budget Responsibility acknowledged the premature release of the economic and fiscal outlook document on their website and assured that it had been removed. An investigation into the incident has been initiated, with plans to report to oversight boards and committees to prevent a recurrence. The full economic and fiscal outlook documents will be released after the Chancellor’s speech.
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