Rachel Reeves admits there were too many ‘very damaging’ leaks ahead of budget

The Chancellor described the leaks as ‘very damaging’ after UK government borrowing costs briefly spiked following news reports of a reversal of an expected income tax rise

Rachel Reeves has accepted that there were “too many” leaks ahead of her Grinch-budget. The Chancellor described the leaks as “unacceptable”, “inaccurate” and “very damaging”.

UK government borrowing costs briefly spiked following news reports of a reversal of an expected income tax rise. She told MPs sitting on the Treasury select committee: “It was not an off-the-record briefing, it was a leak. I’m absolutely categorical that that was not an authorised briefing.”

In the weeks before the Budget, the Chancellor herself fuelled speculation she was preparing to raise income tax. She had suggested that sticking to Labour’s manifesto promises, which included a pledge not to hike income tax, would only be possible with “deep cuts” to public investment.

But a leak to the Financial Times later revealed the proposal to increase income tax rates for the first time in 50 years had been dropped. Ms Reeves told the committee that she and PM Sir Keir Starmer have “a very close partnership” and decided “as a team” not to raise income tax.

She added that an inquiry into the leaks from the Treasury to members of the media is due to take place.

Appearing alongside Ms Reeves, Treasury permanent secretary James Bowler confirmed the leak inquiry would cover ministers as well as officials and advisers.

Meanwhile, the Daily Star’s plucky lettuce has been resurrected in a battle with Sir Keir Starmer for TikTok views. We are trying to collect more ‘likes’ on a video of the green vegetable on our official account than the first video on his profile to prove it’s more popular than him.

It comes after he was mocked for becoming the first PM to join the social media site. Critics branded the move “cringe” and desperate”.

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