Hunt launched for sources of pre-Budget leaks after Reeves criticism

A formal leak inquiry has been launched into how sensitive details of the Budget were prematurely disclosed to the media, a Treasury minister has confirmed, with the full backing of the Chancellor.

The investigation, led by James Bowler, permanent secretary to the Treasury, will scrutinise "security processes to inform future fiscal events".

Chief Secretary to the Treasury James Murray told the Commons that the government places "the utmost weight on Budget security, including the prevention of leaks of information."

The inquiry comes after Rachel Reeves faced significant criticism following a series of major policy leaks from her tax-raising Budget, prompting Commons Speaker Sir Lindsay Hoyle to brand it the "hokey-cokey Budget".

Among the revelations briefed to the press were suggestions that the Chancellor might increase the headline rate of income tax. Subsequent leaks then indicated this tax hike would no longer proceed due to improved economic forecasting.

The leaks culminated in the unprecedented early publication of the Office for Budget Responsibility’s (OBR) economic and fiscal outlook – a crucial document analysing all Budget policies – just hours before the statement last week.

Richard Hughes, the head of the independent watchdog, resigned on Monday over the inadvertent release of the OBR document. Answering an urgent question in the Commons on Wednesday, Mr Murray paid tribute to the outgoing OBR chief, stating the Government would "work closely with the OBR to ensure that robust security arrangements are in place before the spring forecast and for all future forecasts."

Mr Murray also sought to counter suggestions that ministers were displeased with the OBR. This speculation arose after a letter sent by the watchdog to the Treasury Committee of MPs last week contributed to claims that Ms Reeves had "misled" voters regarding the state of public finances. In an unusual move, the OBR had detailed the timing of its pre-measures forecasts, which indicated the Chancellor was aware of a small forecast surplus when she delivered her November 4 speech.

Addressing the speculation, Mr Murray told the Commons: "The Chancellor was aware of that letter and was content for it to be published, and she agreed that with the permanent secretary."

Elsewhere, Mr Murray faced questions regarding whether the Treasury leak inquiry could lead to further resignations. Dame Meg Hillier, Labour chairwoman of the Treasury Committee, pressed MPs: "Leak inquiries have a habit of not finding someone responsible. But if somebody is found responsible, will they follow the lead set by Richard Hughes?" Mr Murray declined to "speculate on the outcome of the leak inquiry", reiterating that the Government takes its "obligations to this House very seriously".