(qlmbusinessnews.com . Tue 2nd Dec, 2025) London, UK —
Unprecedented Leak Forces OBR's Richard Hughes to Step Down, Shakes UK Economic Forecast
The head of the Office for Budget Responsibility (OBR), Richard Hughes, has stepped down following an unprecedented blunder that led to the premature release of a pivotal document on Budget day.
Hughes addressed his departure in a letter, taking “full responsibility” for the lapse, as revealed by the OBR's investigation into the incident, branding it the most significant failure in its 15-year history.
This year's Budget has been mired in controversy, notably with allegations levelled at the Chancellor, Rachel Reeves, for purportedly deceiving the public about the nation's financial health.
Sir Keir Starmer, earlier on Monday, came to the Chancellor's defence, expressing his “pride” in the Budget amidst the accusations.
The OBR plays a crucial role in evaluating the UK economy's status, maintaining independence from the government, though it collaborates closely with the Treasury.
The premature disclosure of the Budget document confirmed several forthcoming measures, such as the three-year halt on income tax and National Insurance thresholds ahead of the Chancellor's announcement, causing disarray.
The investigation into the gaffe concluded on Monday, stating it had considerably tarnished the OBR's reputation and had been “seriously disruptive” to the Chancellor, although it was deemed unintentional.
The investigation pinpointed “ultimate responsibility” for the early access to the report with the OBR's leadership.
In his resignation letter addressed to both the Chancellor and Dame Meg Hillier, Chair of the Treasury Select Committee, Hughes expressed his belief in the OBR's capability to swiftly rebuild trust and respect by adopting the investigation's suggestions.
Hughes conveyed his decision to resign as OBR Chair, emphasizing his role in helping the organization move past this regrettable episode.
Although initially scheduled to discuss the Budget and the OBR's economic forecasts with the Treasury Select Committee on Tuesday, Hughes's resignation means he will no longer be appearing.
Chancellor Rachel Reeves responded to Hughes's resignation with gratitude for his public service and leadership at the OBR over the last five years.
Earlier debates had arisen over whether Reeves had misled the public following her indications of a potential income tax increase, contrasting with the backdrop of grim economic productivity forecasts.
However, the OBR had earlier informed the Treasury that a downgrade in productivity forecasts would be compensated by higher incomes, thus enhancing government tax revenues.
When questioned on Monday about any misleading by Reeves, Sir Keir highlighted the government's commitment to various initiatives, including reduced borrowing, which necessitated revenue generation.
Kemi Badenoch, the Conservative Party leader, pointed out Hughes's resignation amidst the Budget turmoil, criticizing Reeves for attempting to deflect blame onto the OBR chair.
Paul Johnson, former director of the Institute for Fiscal Studies, expressed regret over Hughes's resignation, acknowledging his effectiveness and robustness in the role.
Hughes, who had commenced his second term as OBR chairman after a reappointment by the Chancellor in May, first assumed the role amidst the Covid pandemic in October 2020, bringing extensive experience from his tenure as director of fiscal policy at the Treasury and his eight-year stint at the International Monetary Fund's fiscal affairs department.
The incident has prompted reflections on the OBR's influence and the security of its publication processes, spotlighting a pre-existing vulnerability exploited for early access to its reports, despite assurances and protections supposed to prevent such occurrences. The investigation concluded without implicating foreign actors or internal misconduct but highlighted systemic flaws in the OBR's publication system.
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