Investigation into pre-Budget leaks is under way, MPs told

"Chancellor Rachel Reeves is backing an inquiry into pre-Budget leaks from the Treasury which knocked business and consumer confidence and moved markets. The chief secretary to the Treasury told the Commons on Wednesday an inquiry into pre-Budget leaks was under way, led by top Treasury civil servant James Bowler and had "the full support of the chancellor". Policies such as a freezing of income tax thresholds, a pay-per-mile levy on electric vehicles and a tourist tax were all reported in the lead-up to the Budget on 26 November."

"A downgrade of UK productivity from the Office for Budget Responsibility, and a plan to raise income tax rates, later abandoned, were also briefed to media. Speaker Sir Lindsay Hoyle criticised the leaks, branding it the "hokey-cokey Budget," and reminded the government that policy should be announced first to the Commons. James Murray, chief secretary to the Treasury, told the Commons: "The government puts the utmost weight on Budget security, including prevention of leaks of information. "A leak inquiry is now under way with the full support of the chancellor and the whole Treasury team." Mr Bowler would investigate the "security processes to inform future fiscal events", Mr Murray said."

"The steady flow of headlines around taxation and forecasts for the economy also influenced the bond markets, which dictates the interest rates the UK pays on its debt. A pre-Budget survey by Barclays pointed to more than half of business leaders saying they had delayed investment decisions until after the two-month lead-up to the Budget."

An inquiry into pre-Budget leaks from the Treasury is under way, led by senior civil servant James Bowler with the chancellor's full support. Multiple policy proposals, including freezing income tax thresholds, a pay-per-mile levy on electric vehicles and a tourist tax, were reported before the Budget. A productivity downgrade and an initially planned income tax rise were also briefed to media. The Commons Speaker criticised the leaks and urged policy be announced first to Parliament. The leaks unsettled bond markets and more than half of surveyed business leaders delayed investment decisions during the two-month lead-up.

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