FTSE 100 Live: OBR chiefs face MP grilling; Food inflation slows December 2, 2025 Good morning and welcome back to the City AM liveblog. The Office for Budget Responsibility (OBR) admitted its “worst failure in the 15-year history” of the fiscal watchdog on Monday. This morning, from 10am, two of its remaining spokespeople will be facing a grilling from the Treasury select committee of MPs. The sensational leak of [...]
Businesses left ‘in limbo’ during Budget speculation as bosses feel bruised December 2, 2025 The UK’s private sector was left in a state of “limbo” amid months of Budget speculation leading to delayed investment plans, a leading survey has found, underscoring claims that the government misled the public and businesses over tax rises and fiscal constraints. The Confederation of British Industry (CBI)’s monthly private sector survey has revealed how [...]
Voters blame Labour for tax hikes amid gloomy outlook December 2, 2025 A majority of voters believe that the raft of tax-raising measures unveiled at last week’s Budget prove that Labour has failed to fix the public finances after more than year in office. Senior Labour officials including Chancellor Rachel Reeves have suggested that the government faced constraints on public finances as a result of international trade [...]
OBR chair Richard Hughes resigns after leak ‘inflicted heavy damage’ on watchdog December 1, 2025 The chair of the Office for Budget Responsibility (OBR) Richard Hughes has resigned after a report provided a damning assessment of management at the top of the fiscal watchdog after it leaked its fiscal report before the Budget. Hughes, who has faced pressure from the government since the leak, said he was taking full responsibility [...]
Starmer denies misleading public as fresh row with OBR erupts December 1, 2025 Prime Minister Keir Starmer has denied accusations that Chancellor Rachel Reeves misled cabinet colleagues – and the country – over the state of public finances in the lead-up to the Budget as tax rumours hinged on the belief that there was a £30bn shortfall in the fiscal headroom. In a press conference at a nursery [...]
Lady Mayor: Higher taxes will discourage investors at critical time December 1, 2025 Higher taxes on dividends, pension contributions and savings risk discouraging investors exactly when we need them, writes Susan Langley.
OBR warns higher taxes could hit growth ‘by more than expected’ November 29, 2025 Chancellor Rachel Reeves has been warned that increasing the tax burden could leave the Office for Budget Responsibility (OBR)’s key forecasts on shakier ground as it becomes harder to predict how measures hamper growth. In the small print of its Budget report, the fiscal watchdog said increasing the tax take could lead to unforeseen consequences [...]
FCA pressed to investigate Treasury over Budget briefings November 29, 2025 The Financial Conduct Authority has been urged to wade into the row between the Treasury and the Office for Budget Responsibility and investigate government briefings about a so-called £20bn fiscal hole. Scottish National Party leader Stephen Flynn urged the City regulator to investigate Reeves and other Downing Street officials over “deliberately false and misleading” briefings [...]
Reeves ends Budget week with more unanswered questions than she started with November 29, 2025 It was supposed to be the week that ended months of uncertainty. But Rachel Reeves has finished Budget week with more questions to answer than she started with. Not all of it was bad. Increasing the fiscal headroom was prudent. Cutting back motability spending was sensible. Removing a loophole that allowed private hire firms to [...]
Reeves accused of misleading country over ‘black hole’ in public finances November 28, 2025 Rachel Reeves is in the firing line for “misleading the country” after the chair of the fiscal watchdog poured cold water over claims there was a black hole in public finances. In a new letter addressed to the chair of the Treasury select committee, the OBR chair Richard Hughes said he was taking the “unusual [...]