LONDON — Richard Hughes resigned as Office for Budget Responsibility chair Monday afternoon after the U.K economic watchdog’s market-sensitive fiscal analysis was accidentally published ahead of a crucial government budget.
In a letter to Chancellor Rachel Reeves and Treasury Committee Chair Meg Hillier, Hughes said it was “in the best interests of the OBR for me to resign as its chair” following a damning report into the leak, which overshadowed the government’s set-piece fiscal event last week by spilling much of its contents into the public domain well ahead of time.
Hughes acknowledged early publication of the watchdog’s economic and fiscal outlook last week had been a “technical but serious error,” but said the subsequent report had identified actions “to ensure that it never happens again.” The OBR — which stress-tests the government’s tax and spend plans — could “quickly regain and restore the confidence and esteem” it had earned during its 15 years of existence, he said.
But Hughes said he needed to help the organisation he has led for the past five years “to quickly move on from this regrettable incident.”
Hughes’ resignation came as Chief Secretary to the Treasury James Murray fielded questions in the House of Commons over the inadvertent leak. Murray thanked Hughes for his “dedication to public service,” but Prime Minister Keir Starmer’s spokesperson had repeatedly refused to directly back the OBR chair just hours before.
The leak investigation, published by the OBR Monday afternoon, blamed “pressure on the small team involved” in getting the documents online to ensure that the fiscal forecast was published immediately after Reeves finished her budget speech on Nov. 26.
This led to the use of a “pre-publication facility” which created a “potential vulnerability if not configured properly” — with an apparent guess of the web URL allowing access to the document.
The investigation report, authored by crossbench peer Sarah Hogg and OBR board member and City bigwig Susan Rice, said there should be “completely new arrangements” for publishing market sensitive information, and warned the Treasury to pay “greater attention” to making sure the watchdog is adequately funded.
Hughes will not now appear before the U.K. parliament’s Treasury committee on Tuesday.
This developing story is being updated.
Britain’s fiscal watchdog chief quits over leaked budget
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