Reeves criticises budget leaks and says income tax decision taken in partnership' with PM

"In the run-up to the budget the chancellor gave a set-piece speech that was widely interpreted as preparation for a manifesto-busting income tax rise to help plug a shortfall in the public finances. However, the Financial Times reported less than a fortnight later that the plan had been dropped, triggering a sharp sell-off in bond markets amid investor concerns over the government finances."

"We did look at whether we needed to increase the rates of income tax given our concerns around the forecast In the end that was not necessary, she said. The chancellor said her plans were formed in close partnership with Starmer, whom she met two to three times a week in the run-up to the budget. We decided it together as a team because that is what the prime minister and I am."

Rachel Reeves condemned unauthorised leaks before the budget as unacceptable and damaging, citing IT security issues. The chancellor said the budget attracted excessive speculation and inaccurate leaks that harmed credibility. A pre-budget set-piece speech was widely interpreted as preparation for an income tax rise to plug a fiscal shortfall, but the plan was reported dropped, triggering a bond market sell-off and investor concern. Reeves stated there had been no authorised briefing and said she and Prime Minister Keir Starmer had jointly prepared a possible income tax increase before abandoning it when other measures raised sufficient revenue. The OBR chair resigned after inadvertent early release of budget documents.

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