Pre-Budget policy leakers must be held to account for damage to the economy - London Business News | Londonlovesbusiness.com

"The Pre-Budget leaks have had real world consequences for businesses, individuals and the economy. If the UK's defence policy was leaked this widely, there would be criminal repercussions, yet numerous leaks have continued to plague Budgets and Statements in recent years. The Government must investigate where the leaks came from, those responsible should face disciplinary actions, potential sanctions under the ministerial code or relevant market abuse legislation if what they leaked was market sensitive."

"The leaked pay-per-mile levy on electric vehicles, tourist tax and income tax U-Turn fiasco led to pre-Budget rumours being given far more weight than they normally would. Critical and irreversible financial decisions were made based on hearsay alone. Some taxpayers close to retirement believed the rumour there would be a cut to the 25% tax-free lump sum in the Budget and withdrew large amounts from their pensions."

"I am aware of someone who took his full £268,275 tax-free amount completely needlessly, as he was still working and earning salary well into the 45% tax band. He can't put that amount back in his pot, so all the growth is now going to get taxed. I estimate he will pay around £6,000 more in tax every year as a result."

Pre-Budget leaks have produced tangible harm to businesses, individuals and the economy, creating recurring uncertainty around Budgets and Statements. The Government should investigate leak sources and consider disciplinary actions, ministerial-code sanctions or market abuse legislation where disclosures were market sensitive. Leaks about a pay-per-mile levy, tourist tax and income tax reversals increased the weight of rumours and prompted critical, irreversible financial decisions based on hearsay. Some taxpayers nearing retirement withdrew large pension sums fearing a cut to the 25% tax-free lump sum. Rumours of an Exit Tax spurred emergency redomicile planning and further uncertainty about tax strategy.

Read at London Business News | Londonlovesbusiness.com