Treasury Launches Inquiry into Potential Budget Leak

The UK Treasury has started an investigation into a possible leak of sensitive budget information that may have affected financial markets. This inquiry follows concerns from the Treasury Committee about the early disclosure of changes to the Bank Corporation Tax Surcharge before Chancellor John Healey's fiscal statement last month.

Key Details

The Government Security Group is leading the investigation, according to Treasury permanent secretary James Bowler. He said he was assured that no banks or their representatives were informed about the tax changes before the Chancellor's announcement. However, Bowler noted that there was a "necessary widening of the circle of knowledge within government" on the day of the Budget, which raised worries about confidentiality.

Dame Meg Hillier, chair of the Treasury Committee, expressed doubt about the inquiry's effectiveness. She criticized the Treasury's past investigations, stating, "I suspect that yet another inquiry into the leak of Budget measures will turn up no evidence of a breach but plenty of reassurance that next time it will be even more secure." Hillier stressed the need for answers on how market-sensitive information spread before it was officially released.

Background

The inquiry will likely focus on a Bloomberg report published just before the Budget announcement. This report suggested that the increase in bank taxes would be less severe than expected. The Chancellor later confirmed that the Bank Corporation Tax Surcharge would temporarily rise from 3% to 6% for 15 months starting in January 2027 to help address cost-of-living pressures.

Based on reporting by: standard.co.uk