OBR letter blows lid on Reeves’ Budget fibs
Chancellor Rachel Reeves is under fire after a bombshell letter from the Office for Budget Responsibility (OBR) revealed she knew months ago there was no dire public finance crisis. Yet, she spun a grim tale to push through record-breaking tax rises.
Just days before last week’s Budget, Reeves painted a doom-and-gloom picture blaming Brexit, austerity, and Donald Trump for a collapsing economy. She hinted at breaking Labour’s no income tax rise pledge and warned huge spending cuts if taxes stayed put.
But the OBR letter exposes the truth: since September, Reeves had been told increased tax revenues nearly cancelled out a £21 billion productivity hit. By late October, she had a £4 billion fiscal buffer and was on track to meet spending rules—no tax hikes needed.
Political spin trumps the facts
Despite clear data, Reeves pushed a £30 billion tax rise in her Budget—largely to pacify rebellious Labour MPs demanding bigger welfare payouts. She dropped explicit income tax rises only after a Financial Times leak blew the plan wide open.
Tories demand her head
Conservative leader Kemi Badenoch slammed Reeves on X: “More proof the Chancellor must go. For months she lied to justify the biggest tax hikes ever—for welfare giveaways, not stability.”
Tory frontbencher Neil O’Brien accused Reeves of twisting “better than expected” numbers just to pull a “budget rabbit” and dodge clearly raising rates.
OBR boss spells out the timeline
Richard Hughes, OBR chair, confirmed forecasts from 17 September and 3 October already factored in productivity downgrades balanced by rising tax revenues. By 31 October, the government was comfortably set to meet all fiscal targets—no extra tax needed.
This latest leak reveals Reeves’ Budget warnings as little more than a political smokescreen—misleading the public while hiking taxes to fund handouts, not fix the books.
