The British government and the public service were deeply embarrassed today, when the budget for next year that was eagerly awaited by the public and the markets was leaked almost in its entirety on a government website. The Office for Budget Responsibility (OBR), an independent public body funded by the Treasury, designed to provide independent assessments of fiscal policy measures and their impact on the Kingdom, released its summary of the new budget and its assessments about an hour before Chancellor of the Exchequer Rachel Reeves began her speech.
The leak caused a stir in the markets. Due to the bottom line of the budget, which predicts an increase of 29.8 billion pounds in the state’s tax revenues until the 2029-2030 budget year. The yields on British bonds fell immediately after the leak and the pound strengthened against the dollar, with the move symbolizing greater fiscal responsibility on the part of the Labor government that actually promised to lower taxes. But in the following hour, the yields and the dollar returned to their pre-leak position.
The government office opened an investigation
At this time Reeves is updating the parliament regarding the details of the budget – which have already been widely published by the media in the kingdom. Among the key measures announced by Reeves: a freeze on the lowering of income tax for the middle classes for another three years, an estate tax on the most expensive house strata in Britain, a new tax on gambling profits (excluding horse racing), a travel tax on electric vehicles from 2028, a new tax on dividends and certain savings. In total, the Chancellor of the Exchequer predicts that the increases will give it a “financial margin” of £22 billion, which is above the amount expected by the market (about £20 billion).
The government office OBR apologized for the “inadvertent error” and said it had launched an investigation to see how it happened. Above Reeves’ speech hovers the threat of British 10-year and 30-year bond yields. A jump in these yields has already brought down one prime minister (Liz Truss), and trading in “gilts” – as British government bonds are called – is the center of enormous interest and huge volumes, even compared to other governments. Part of this is due to the fact that close to a third of them are held outside the kingdom, by foreign investors. The following hour The speech, the yields on ten-year British bonds remained at the level they were at until now, 4.5%. So are the 30-year bond yields, which stand at 5.3%.
For your attention: The Globes system strives for a diverse, relevant and respectful discourse in accordance with the code of ethics that appears in the trust report according to which we operate. Expressions of violence, racism, incitement or any other inappropriate discourse are filtered out automatically and will not be published on the site.