US EditionReeves hits out at Budget leaks and says tax threshold freeze a joint decision with PM
Chancellor Reeves and PM Starmer extended the income tax threshold freeze for three years amid a leak inquiry involving ministers and officials, citing damaging unauthorised briefings.
- Appearing before the Treasury Select Committee, Chancellor Rachel Reeves said a leak inquiry led by the permanent secretary has her full support and the tax threshold freeze was a joint decision with Prime Minister Sir Keir Starmer.
- A Financial Times report revealed plans to raise income tax were dropped before Reeves's Commons statement, while the Office for Budget Responsibility and Treasury shared extensive data between October 30 and major measures.
- Treasury permanent secretary James Bowler told MPs the leak inquiry will cover ministers as well as officials and advisers, and Reeves said she met Sir Keir two, three times a week during the Budget process.
- A resignation followed, as Richard Hughes, former OBR chairman, resigned last month and Tory MPs scheduled a House of Commons censure motion on Wednesday demanding Reeves apologise.
- Looking ahead, Reeves noted that pre-measures forecasts are not final and post-measures forecasting reflects ongoing adjustments between the OBR and Treasury after October 30.
22 Articles
22 Articles
Reeves: PM and I Decided ‘As a Team’ Not to Hike Income Tax
Rachel Reeves said she and Sir Keir Starmer had decided “as a team” not to raise income tax as she hit out at “too many leaks” in the run-up to Budget. The Chancellor told MPs the “very close partnership” between herself and the Prime Minister meant the move to extend a freeze on tax thresholds instead had been made jointly. It came as a senior Treasury official confirmed a leak inquiry into reports of economic policy that emerged before Ms Reev…
Nikita Malik: The Budget has created real dilemmas for working mothers
Nikita Malik is the Head of Work and Opportunity at the Centre for Social Justice. Rachel Reeves’ Budget has taken taxes to an all-time high – and some of the biggest losers of these changes will be working mothers. Like others, they will be caught in frozen income tax thresholds for an additional three years, meaning less take-home pay to provide for their children. But Reeves’ salary sacrifice tax raid also means it will be harder to take adv…
Reeves criticises leaks as she defends Budget
Chancellor Rachel Reeves says she did not mislead the public in the lead-up to her recent budget. Quizzed by the Treasury Select Committee she maintained she was upfront about the choices she faced. The decision to freeze tax thresholds was made with the Prime Minister, she said but she admitted that there were too many leaks before budget day.
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