UK government delivers budget after unprecedented leak
UK Treasury chief Rachel Reeves has risen to deliver a crucial tax rise budget statement to MPs after an unprecedented leak from the government’s independent forecaster essentially laying out her measures.
According to the leak from the Office for Budget Responsibility, the biggest change in terms of money raised has been a freeze on the levels at which earners pay different levels of tax in the UK; This means that as wages rise, more people fall into higher tax brackets.
Other measures include introducing a mansion tax on high-value properties, changes to the capital tax regime and cuts to tax-free provisions for private pensions.
The government will raise 26 billion pounds ($53 billion) in 2029-30, according to leaked documents from the OBR for which it apologized.
The OBR claimed the leak was a “technical error” and said the leak “went live on our website very early this morning”.
Chancellor @RachelReevesMP leaves Number 11 to hand over her Budget to @HouseofCommons. pic.twitter.com/Qm9bcRn0Z7— HM Treasury (@hmtreasury) November 26, 2025
He said he would report what happened to all relevant authorities, including the Treasury.
The leak is a fresh embarrassment for Britain’s Labor government after weeks of speculation and mixed signals roiled markets.
Reeves’ second budget since Labor came to power in 14 years with a landslide election victory in July 2024 could be crucial for the fate of both Reeves and his boss, Prime Minister Keir Starmer.
The overall message in the budget is much the same as it was in his first budget just over a year ago.
He insisted at the time that it would be the only major tax increase budget in the parliamentary term, which runs until 2029.
Unfortunately for Reeves, the UK economy, the world’s sixth largest, is not doing as well as he had hoped; Many critics blame Reeves’ decision last year to put taxes on business.
Although there were signs that the economy was improving in the first half of the year, when it was the fastest-growing economy among the G7’s leading industrialized countries, it floundered again.
The budget is a risky moment for Reeves and Starmer, who face growing concern from Labor MPs over poor poll results.
Opinion polls consistently show Labor well behind the populist UK Reform Party led by Nigel Farage.
The next election is not due to be held until 2029, and the government continues to hope that its economic measures will spur higher growth and ease fiscal pressures.
But speculation is swirling about a potential challenge to Starmer’s leadership from within his party, and analysts say a misfired budget could heighten the sense of crisis within the government.
