Calls Mount for Investigation into Budget leak Claims
LONDON – Both the Conservative and Scottish National Party (SNP) have formally requested a probe by the Financial Conduct Authority (FCA) into allegations of “deliberately false and misleading” briefings preceding the UK Budget.The calls for investigation center on reports suggesting a potential £20 billion gap in Chancellor Rachel Reeves‘ tax and spending plans due to a productivity downgrade from the Office for Budget responsibility (OBR).
the controversy stems from conflicting narratives surrounding the state of the UK’s finances leading up to the Budget announcement. Reports indicated a significantly larger fiscal challenge than publicly acknowledged, prompting accusations that Reeves deliberately misrepresented the situation. This has ignited a political firestorm, with calls for greater openness and accountability regarding pre-Budget communications.
Conservative Party leader Kemi Badenoch has demanded the resignation of Reeves,stating,”The chancellor called an emergency press conference telling everyone about how terrible the state of the finances were and now we have seen that the OBR had told her the complete opposite. She was raising taxes to pay for welfare.” Badenoch has also led a push for Reeves to appear before parliament on Monday to address the allegations.
Reeves defended her actions in a recent interview with Laura Kuenssberg, clarifying that the £4.2 billion headroom initially reported was a downgrade from the £9.9 billion buffer available last year. “I clearly could not deliver a budget with just £4.2bn of headroom,” she explained, adding that such a small surplus would have been unprecedented and subject to criticism. She further stated her intention to increase resilience, ultimately raising the headroom to £21.7 billion through the decisions made in the Budget.
The FCA investigation, if launched, will focus on whether any market abuse occurred through the dissemination of inaccurate or misleading facts that could have influenced financial markets. The outcome could have important implications for the credibility of the Budget process and the trust placed in official economic forecasts.
