Martin Lewis slams Budget bombshell leak with ‘staggering’ two-word verdict
The Budget watchdog has accidentally released its major documents on the Budget before Rachel Reeves has delivered it to the Commons and Martin Lewis slammed the “staggering” mistake
Martin Lewis slammed the extremely rare Budget leak with a brutal two-word summary – and said Labour will be ‘fuming.’
In a huge error that sent shockwaves through Parliament, the Office for Budget Responsibility published key details of the Budget before Chancellor Rachel Reeves delivered her Budget this afternoon.
The TV finance expert was quick to slam the ‘staggering’ mistake, which confused financial markets and sent TV journalists scrambling to uncover the details. Martin wrote on Twitter: “This looks like staggering fat fingers from the OBR publishing budget outcome before the budget, govt will be fuming.” Major details in the Budget were leaked before Rachel Reeves has delivered her financial statement to the Commons.
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Martin Lewis added: “Cash ISA annual allowance cut to £12,000 (from £20,000) per tax year This will not apply to over 65s, who will keep £20,000 cash ISA limit The shares ISA will remain at £20,000.
“There’s logic in here based on the policy aims. While I would’ve preferred a carrot not stick approach – this isn’t as bad as it could’ve been, £12,000 per year is still a reasonable whack for many people. The stated aim was not to raise revenue but to encourage young people to invest rather than save – both for the economy but also because on average it outperforms.
“When I met Chancellor on this a few weeks ago, I pointed out that a blanket cut to the limit would be perverse, to cut cash ISA limits to older people to encourage younger to invest wouldn’t work. So the carve out for over 65s makes total sense and I’m pleased she listened. What needs to happen along with this is better investment education, easier access to guidance, and better investment incentives for young people.”
The Chancellor, who was seen checking a phone as she sat on the frontbench during Prime Minister’s Questions, was due to announce the Budget to MPs at 12:30pm. But the Office for Budget Responsibility (OBR) released its economic and fiscal document – which includes the main measures in the Budget – before Ms Reeves’s speech.
Before delivering her Budget, a furious Ms Reeves later branded the leak “deeply disappointing” and “a serious error on their part”. She emphasised to MPs that it was “their breach”, for which they have now taken responsibility.
The OBR document confirmed swathes of Budget measures – including £26billion in tax rises overall and the scrapping of the two-child benefit limit. The watchdog later apologised for a “technical error” that had led to the accidental publication and said it has launched an investigation into how it happened.
Its document confirmed the Budget will raise taxes by amounts rising to £26billion in 2029-30. This will be through freezing personal tax thresholds for another three years until 2030-31 – despite Ms Reeves previously saying that extending the freeze would hurt working people – as well as a host of smaller measures. The OBR says this brings the tax take to an all-time high of 38% of GDP in 2030-31.
The document also confirms the two-child benefit limit will be scrapped from next April. It says: “The Government has removed the two-child limit within UC from April 2026… Its removal costs £2.3billion in 2026-27 and £3billion in 2029-30.”
In the document, the OBR increased its forecast for economic growth this year from 1% to 1.5% but downgraded its forecasts for the following four years.
Ms Reeves previously warned that extending a freeze on income thresholds would hurt workers. At last year’s Budget, she told MPs: “I have come to the conclusion that extending the threshold freeze would hurt working people. It would take more money out of their payslips.”
Labour promised not to raise taxes – including VAT, national insurance and income tax – on working people in its manifesto but a freeze in income tax thresholds could see people being dragged into a higher tax bracket.
Speaking in Prime Minister’s Questions, Tory leader Kemi Badenoch said the leak from the OBR was “unprecedented”. Lib Dem leader Sir Ed Davey also challenged the PM on the Budget leak – asking him about tax rises detailed in the OBR document.
In PMQs, Keir Starmer has said the Budget will have “Labour values” and will be for families who are worried about the cost of living. Speaking at the start of PMQs, he said: “Today’s Budget will be a Labour Budget with Labour values to deliver for the British people’s priorities.
“I know what it feels like to sit around the kitchen table worried about bills that can’t be paid. That’s why this Budget is for families that I know today are equally worried about the cost of living.
“That’s why we’re rolling out free breakfast clubs, free childcare and free school meals. And today we’ll be going further to deliver the change we were elected to bring about: cutting NHS waiting lists, cutting the national debt and cutting the cost of living.”
The Office for Budget Responsibility (OBR) said in a statement: “A link to our economic and fiscal outlook document went live on our website too early this morning. It has been removed. We apologise for this technical error and have initiated an investigation into how this happened.
“We will be reporting to our oversight board, the Treasury, and the Commons Treasury Committee on how this happened, and we will make sure this does not happen again. Our economic and fiscal outlook and supporting documents will be released when the Chancellor has finished her speech.”
