UK Chancellor Rachel Reeves has slammed "unacceptable" leaks before her budget announcement, revealing that an income tax U-turn was agreed in partnership with Prime Minister Keir Starmer. The chancellor, defending her tax and spending plans to MPs on the Commons Treasury committee, expressed frustration over "leaks that were clearly not authorised", which she said had caused significant damage and IT security issues.
Reeves acknowledged that there were leaks before her November speech, but insisted that an income tax rise was never a certainty. Instead, she revealed that she and Starmer had been working together to prepare for an announcement about increasing tax rates, but ultimately decided against it due to other measures raising sufficient revenues.
The chancellor maintained that the decision was made in "close partnership" with the prime minister, who met her two to three times a week before the budget. This contradicts earlier reports suggesting that the plan had been dropped despite no authorised briefing.
Reeves defended her fiscal rule, which includes leaving almost £22bn of headroom against the target. She acknowledged that she reserves the right to take further action if necessary, but downplayed the likelihood.
The chancellor also announced several key policy changes, including scrapping plans for capital gains tax on primary residences and the pensions triple lock in the current parliament. However, economists have warned that her budget plans may be subject to scrutiny over their deliverability, particularly given concerns about the credibility of revenue-raising measures.
Reeves assured investors that the government would introduce legislation to enact tax changes at the earliest possible opportunity, including a new council tax surcharge on properties worth more than £2m and an electric vehicle levy.
Reeves acknowledged that there were leaks before her November speech, but insisted that an income tax rise was never a certainty. Instead, she revealed that she and Starmer had been working together to prepare for an announcement about increasing tax rates, but ultimately decided against it due to other measures raising sufficient revenues.
The chancellor maintained that the decision was made in "close partnership" with the prime minister, who met her two to three times a week before the budget. This contradicts earlier reports suggesting that the plan had been dropped despite no authorised briefing.
Reeves defended her fiscal rule, which includes leaving almost £22bn of headroom against the target. She acknowledged that she reserves the right to take further action if necessary, but downplayed the likelihood.
The chancellor also announced several key policy changes, including scrapping plans for capital gains tax on primary residences and the pensions triple lock in the current parliament. However, economists have warned that her budget plans may be subject to scrutiny over their deliverability, particularly given concerns about the credibility of revenue-raising measures.
Reeves assured investors that the government would introduce legislation to enact tax changes at the earliest possible opportunity, including a new council tax surcharge on properties worth more than £2m and an electric vehicle levy.
... another budget leak... can't these people keep secrets for once? 
it's like they're trying to make the government look incompetent. newsflash: if you don't want something to leak, don't agree to the details with your boss, genius 
. also, £22bn of headroom against the target? sounds like a recipe for disaster 
. and what's up with the council tax surcharge? another way for the wealthy to get even wealthier 
It's like, what even is the point of having a budget if you're just gonna leak all the details out there and cause a ruckus? And now they're saying it was all part of a "close partnership" between Rachel Reeves and Keir Starmer? That sounds like something outta a rom-com 
. I don't know, man...my grandma could've predicted this stuff back in 2018 
. And I guess it's good they're scrapping the pensions triple lock and all that...people are always complaining about how expensive things are already 
. But still, leaks? Really? Can't we just have a smooth announcement like everyone else for once? 
seems like there's still a lot of uncertainty around how much revenue they'll actually raise... maybe Reeves is tryna set expectations low so she can exceed them later on? 
."
. Also, £22bn headroom? That sounds like a pretty generous buffer if you ask me 
on the budget. but at the same time, economists are already questioning whether this plan will work out 
this whole thing is just so frustrating... like, we're supposed to trust our leaders now? Rachel Reeves is basically saying that her budget plan was just "agreed upon" with Keir Starmer, but I'm not buying it 
it's not like she's being transparent or anything 
and by the way, who exactly did these leaks hurt? The public? Not really 
I think it's good that she's owning up to those leaks and being transparent about the process...it sounds like a lot of backroom deal-making went into that income tax u-turn 
anyway, nice move on scrapping that primary residence capital gains tax and pensions triple lock - some much needed relief for people! 
. The whole income tax U-turn thing had me confused too 
It's just so... 2020s 
. Reeves needs to step up her game and get some better info-security 
.
, but I'm still not convinced 
.
especially when they're not even sanctioned by the gov't. I get that there was a u-turn planned but it feels like the plan got leaked and everyone freaked out 
The fact that Starmer was working with her behind closed doors is suspicious, tbh 
without the public's knowledge 
. She's not getting defensive or apologetic, which suggests she knows there was no actual breach of trust with Keir Starmer.