Sun, 23 Nov 2025

Sun, 23 Nov 2025 Minister denies Budget leaks have damaged economy

A former Bank of England chief economist says Budget speculation has "caused paralysis for businesses and consumers".
Transport Secretary Heidi Alexander has dismissed concerns that pre-Budget leaks have damaged the economy, despite criticism from former Bank of England chief economist Andy Haldane that speculation has "caused paralysis among businesses and consumers". The government's plans for the Budget on Wednesday have been dominated by media reports about potential tax increases, with Chancellor Rachel Reeves expected to announce a range of smaller tax rises to help fill a multibillion-pound gap in her spending plans. However, sources close to Reeves had previously suggested she was considering increasing income tax rates, a move that would breach Labour's election promise not to raise "the basic, higher or additional rates of income tax". Haldane branded the months of speculation about potential Budget measures a "fiscal fandango" and said it has been costly for the economy. Alexander responded by saying that people always speculate in advance of a Budget and that the government had been clear about its priorities. Reeves is expected to freeze rail fares in England next year, a move that will help cut the cost-of-living, while also announcing plans to reduce NHS waiting lists and the national debt. The Chancellor has also indicated that she may scrap the two-child benefit cap, which was introduced by the Conservatives and has been estimated to cost over £3bn to remove. The shadow chancellor Mel Stride has called for an investigation into pre-Budget leaks, saying they have "real world consequences including for financial markets". He argued that either ministers have approved the briefing of confidential information or serious unauthorized leaks have occurred within the Treasury department.
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