Chancellor Rachel Reeves is backing a formal inquiry into a series of pre-Budget leaks that unsettled markets and weakened business and consumer confidence. The chief secretary to the Treasury told the Commons that an internal investigation, led by permanent secretary James Bowler, is now underway with the chancellor’s full support.
In the weeks leading up to the Budget, several policy proposals surfaced in the media, including a freeze on income tax thresholds, a potential pay-per-mile levy for electric vehicles, and the introduction of a tourist tax. Reports also emerged about a downgrade of UK productivity forecasts by the Office for Budget Responsibility, as well as a possible rise in income tax rates, which was later dropped.
Concerns over market impact and parliamentary process
The steady flow of leaks drew sharp criticism from Speaker Sir Lindsay Hoyle, who described the situation as a “hokey-cokey Budget” and reminded ministers that Parliament should be the first to hear policy announcements. The disclosures influenced the bond markets, affecting the cost of government borrowing, and created uncertainty for households and businesses.
A Barclays survey indicated that more than half of business leaders delayed investment decisions in the two months leading up to the Budget. Pension behaviour was also affected. Mark FitzPatrick, chief executive of St James’s Place, told BBC Radio 4’s Today programme that “hundreds of thousands” of people accessed pension savings early because they were concerned about what the Budget might contain. He said speculation “affects people’s lives” and that “the flying of kites is unhelpful”.
Details of the investigation
James Murray, chief secretary to the Treasury, told MPs that the Government places the “utmost weight” on Budget security and on preventing unauthorised disclosures. Dame Meg Hillier, chair of the Treasury Select Committee, pressed the Government on whether anyone found responsible would be expected to resign, referencing the recent departure of Richard Hughes, former chair of the OBR. Hughes resigned after an error on Budget day led to an OBR document being released before the chancellor delivered her speech. When questioned, Murray declined to speculate on outcomes or potential sanctions.
The Financial Conduct Authority has also taken an interest in this matter. In a letter to the Treasury Select Committee, FCA chief executive Nikhil Rathi, said the regulator had requested information about the leak inquiry “so we can consider as appropriate”. He noted that the FCA typically does not comment on its investigative work.
Growing pressure for accountability
The volume and timing of the leaks, combined with their impact on markets and public decision-making, have heightened calls for greater discipline around Budget preparations. The Government now faces pressure to restore confidence in the integrity of fiscal events, limit speculation, and ensure Parliament, rather than the media, receives policy announcements first.
The inquiry’s findings will shape future security procedures and determine whether individual responsibility can be established. For now, ministers maintain that Budget secrecy is essential and that reinforcing these protections is a priority for both the Treasury and financial regulators.
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