Treasury didn't reveal spending pressures, says watchdog

Published On Oct 30, 2024, 12:45 PM

The UK's Office for Budget Responsibility (OBR) reported that it was not informed by the Treasury about £9.5 billion in additional public spending pressures before the March Budget, leading to a misleading assessment of the nation's finances. Chancellor Rachel Reeves attributed increased taxes of £40 billion to these undisclosed pressures and the previous government's unfulfilled spending promises. The OBR's findings suggest that had they been aware of the omitted spending, their financial forecasts would have reflected a higher expected expenditure. This situation has led to political disputes, with opposition leader Rishi Sunak rejecting Labour's claims as unfounded. The Chancellor has pledged to follow all OBR recommendations moving forward to ensure transparency in governmental financial operations.