Summary
A senior official from the UK's economic forecaster, the Office for Budget Responsibility (OBR), stated that Chancellor Rachel Reeves did not mislead the public about the UK's financial challenges before the Budget. Although forecasts were better than expected, difficult financial choices still needed to be made. There was also concern over media leaks regarding financial information leading up to the Budget.
Key Facts
- Professor David Miles from the OBR said Rachel Reeves' comments about financial challenges were accurate.
- The OBR's forecasts suggested a better financial situation than initially thought.
- Despite better forecasts, the Budget involved challenging choices and included £26 billion in tax increases.
- Rachel Reeves warned of weaker UK productivity impacting public finances ahead of the Budget.
- The OBR informed the Treasury that higher wages would offset lower productivity, meeting a key borrowing rule by £4.2 billion.
- There were concerns about media leaks of financial information before the Budget.
- A political dispute arose over whether Reeves misled the public to justify tax rises.
- The financial "headroom" or buffer for the Budget was much smaller than in previous years.
