Pre-Budget policy leakers must be held to account for damage to the economy
There must be consequences for the damage pre-Budget policy leaks have caused for businesses, individuals and the UK economy, say leading audit, tax and business advisory firm, Blick Rothenberg.
Robert Salter, a director at the firm, said: “The Pre-Budget leaks have had real world consequences for businesses, individuals and the economy. If the UK’s defence policy was leaked this widely, there would be criminal repercussions, yet numerous leaks have continued to plague Budgets and Statements in recent years.”
He added: “The government must investigate where the leaks came from, those responsible should face disciplinary actions, potential sanctions under the ministerial code or relevant market abuse legislation if what they leaked was market sensitive.”
Robert said: “The leaked pay-per-mile levy on electric vehicles, tourist tax and income tax U-Turn fiasco led to pre-Budget rumours being given far more weight than they normally would. Critical and irreversible financial decisions were made based on hearsay alone.”
He added: “Some taxpayers close to retirement believed the rumour there would be a cut to the 25% tax-free lump sum in the Budget and withdrew large amounts from their pensions. I am aware of someone who took his full £268,275 tax-free amount completely needlessly, as he was still working and earning salary well into the 45% tax band. He can’t put that amount back in his pot, so all the growth is now going to get taxed. I estimate he will pay around £6,000 more in tax every year as a result.”
Robert said: “The rumour of an Exit Tax for those leaving the UK meant as advisors we were fielding calls from clients wanting emergency redomicile planning for themselves and their businesses overseas. The rule change did not come, but it is likely that some will follow through on their plans to leave, as they feel that the government lacks a clear and cohesive tax strategy due to the pre-budget leaks and rumours.”
He added: “Some of these clients are non-domiciled and deemed domiciled individuals – i.e. individuals with their roots outside the UK. The combined tax and National Insurance Contributions (NICs) liabilities for these taxpayers in the tax year ending 2024 was £12bn – a reduction in this would represent a real loss to the UK’s economy on its own. However, clients who are UK-domiciled individuals, who were concerned about potential changes to Inheritance Tax (IHT) are also considering leaving, meaning the overall economic damage could be greater still.”
Robert said: “policy advisors, commentators, representative bodies, civil servants and apparently the government itself recognise that the environment around the Autumn Statement and the now infamous OBR Leak on Budget Date was not a great example of political competence or fiscal responsibility.”
He added: “I hope that out of this there is active engagement with individuals and businesses impacted by the leaks and the government uses this as a learning opportunity for the 2026 Budget. I believe the Treasury Select Committee, responsible for examining and scrutinising chancellor of the exchequer among other individuals and organisations should have a significant part in the that process.”