London, December 02, 2025
Prime Minister Keir Starmer has affirmed support for Treasury Chief Rachel Reeves amid a major budget leak controversy involving the premature release of economic forecasts by the Office for Budget Responsibility (OBR) on budget day, sparking calls for investigations into misleading public statements.
Details of the Budget Leak
On budget day, sensitive economic forecasts prepared by the OBR were accessed and leaked before their official publication, an event that sent ripples through financial markets. The OBR attributed the leak to “configuration errors” related to its WordPress publishing platform, which unintentionally allowed external parties to retrieve documents if they guessed their web addresses. The government confirmed that the leak was not due to hostile cyberactivity, dismissing allegations of targeted hacking.
Allegations Against Treasury Chief Reeves
The controversy has centered on accusations from opposition parties—including the Conservatives, Scottish National Party, and Reform U.K.—who claim that Treasury Chief Rachel Reeves may have knowingly misrepresented the state of the economy in her budget speech. These parties allege Reeves was aware of a more favorable economic forecast than she conveyed publicly and have called for inquiries by the Financial Conduct Authority and the government’s standards adviser.
Reeves has denied wrongdoing, stating that the OBR’s formal assessment prior to the budget indicated a £16 billion shortfall in tax revenue, primarily due to a downgraded productivity forecast. She insists that her speech accurately reflected the “big impact” that the OBR’s downgrade had on public finances and justified the need for increased contributions.
Leadership Repercussions and Response
In the wake of the leak, OBR Chair Richard Hughes announced his resignation, expressing that this step would enable the organization to move past the incident. His departure marks a significant change in leadership at the independent fiscal watchdog tasked with economic forecasting and fiscal analysis.
Despite the political turbulence, Prime Minister Starmer has continued to back Reeves, underscoring confidence in both her leadership and economic policies, which aim to reduce the welfare budget while strengthening Britain’s ties with the European Union.
Role and Importance of the OBR
The OBR’s forecasts play a critical role in shaping government policy and market expectations. Its independence is fundamental to maintaining trust in public finance management. The leak incident, therefore, has raised questions about operational security and the integrity of government communications.
As investigations proceed, the implications for economic governance and political accountability remain under close scrutiny. The government’s handling of the fallout will be closely watched by business leaders, policymakers, and citizens concerned about transparency and reliability in public fiscal management.