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Treasury Opens Leak Inquiry as FCA Declines Immediate Probe Into Budget Briefings

Officials aim to restore confidence after a chaotic pre‑Budget rollout.

Overview

  • The Treasury has ordered a formal investigation led by permanent secretary James Bowler to examine how Budget details were disclosed in advance and to tighten security for future fiscal events.
  • The Financial Conduct Authority said it will not commence an enforcement investigation now but will review the findings of the Treasury’s leak inquiry before deciding next steps.
  • At Prime Minister’s Questions, Keir Starmer defended Chancellor Rachel Reeves as Conservative leader Kemi Badenoch alleged she misled the public and raised potential market‑abuse concerns; the OBR indicated her pre‑statement messaging was not inconsistent with analysis it shared.
  • OBR chair Richard Hughes resigned after the watchdog’s economic outlook was published online before the Budget, and ministers said they will work with the OBR to strengthen safeguards.
  • Reeves’s Budget set about £26bn in tax rises and lifted the two‑child benefit cap, as the OECD warned the plans would act as a headwind to growth and leave UK inflation relatively high compared with peers.