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Treasury Committee Rebukes Reeves Over Tax U‑Turn and Opens Probe Into OBR Independence

The move follows the watchdog’s premature Budget publication, testing whether the fiscal referee still operates at arm’s length.

Overview

  • Dame Meg Hillier said Rachel Reeves made a “glaring error” by signalling an income tax rise before reversing course.
  • MPs have launched an inquiry to assess whether the OBR remains reliable and independent after its accidental early upload of Budget documents.
  • Hillier warned the committee could withhold consent for the next OBR chair if the nominee lacks clear distance from the Treasury.
  • OBR chair Richard Hughes has resigned over the publication error, with the Chancellor set to begin the search for his successor in the new year.
  • Reeves denied authorising briefings about the U‑turn and ordered a leak inquiry, after telling MPs there were too many pre‑Budget leaks.