The head of the UK’s Office for Budget Responsibility resigned on Monday after the fiscal watchdog accidentally published its full analysis of Chancellor Rachel Reeves’ budget moments before she was due to present it to Parliament, a blunder that Bloomberg reported had already rattled markets and disrupted a pivotal political moment. Richard Hughes, chair of the OBR, said in a letter that he would leave his post early after the documents went live on the watchdog’s website in what officials called an unprecedented breach of protocol.
An internal inquiry published Monday described the leak as the “worst failure in the 15-year history of the OBR.” The premature release sparked market volatility last week, overshadowing Reeves’ attempt to reassure investors and stabilize support within the Labour Party during what was meant to be a decisive fiscal reset. Reeves called the incident “deeply disappointing and a serious error,” underscoring how the misstep hijacked her long-prepared budget rollout.
According to the investigation, the breach occurred because the OBR’s budget analysis was accessible via a predictable URL—an avoidable technical oversight that had also surfaced during Reeves’ economic statement in March, though without meaningful fallout. Hughes said he was “mortified,” admitting that the institution had “let people down,” as reported by Bloomberg.
The fallout is already intensifying long-running debates over the OBR’s authority. Some lawmakers argue the fiscal watchdog’s forecasts exert too much influence over national budgeting, while others fear weakening the institution would reduce transparency. Prime Minister Keir Starmer said Monday that the leak was serious but stressed that he remained “very supportive” of the OBR.
The watchdog serves as the government’s official forecaster, with its projections on growth and borrowing determining whether Reeves’ policies meet her fiscal rules. Its powerful role has led to repeated confrontations with previous chancellors, including under former Prime Minister Liz Truss, who bypassed the OBR entirely during her disastrous 2022 mini-Budget.
Reeves used her budget speech to announce that the OBR’s role would be scaled back: the body will assess compliance with fiscal rules once a year instead of twice, aligning with a recommendation from the International Monetary Fund and confirming earlier Bloomberg reporting. Hughes, who had been reappointed earlier this year to a second and final five-year term, had previously pledged to resist the change—an ambition now cut short by his abrupt departure.
