OBR Chair Richard Hughes has resigned after an internal inquiry found errors in the watchdog’s handling of confidential fiscal documents. The review examined how details of Rachel Reeves’s budget were accessed online about an hour before the chancellor delivered her speech in parliament.
Richard Hughes resigned as OBR Chair after an inquiry into the early release of budget documents
The report described the event as the worst failure in the OBR’s 15-year history. It also pointed to long-standing weaknesses in how the organisation published sensitive material on its website.
Hughes informed the chancellor and the Treasury Committee that he would leave his role to allow the OBR to recover quickly. He stated that he accepted full responsibility for the failings set out by the investigation.
Inquiry Finds Technical Errors Behind Early Release
The investigation found that configuration errors allowed users to reach the online location where the Economic and Fiscal Outlook was stored. The OBR had believed the link was hidden until the formal publication time.
The watchdog said the issue involved a facility used to prepare files before release. The setup made the document accessible if someone guessed or knew the URL during the short window before the budget statement.
On the morning of the budget, several attempts were made to reach the link. Records show 44 unsuccessful requests from seven unique IP addresses before 11.30 am. The first successful access was made at 11.35 am, followed by 43 successful attempts from 32 IP addresses.
Political Leaders Respond After Resignation
The resignation triggered a wave of political responses across Westminster. Conservative leader Kemi Badenoch said the chancellor was using Hughes as a “human shield”. She renewed her call for Reeves to step down, arguing that the government had misjudged its handling of public finances.
The SNP also pressed Reeves to resign, drawing comparisons with previous resignations in other institutions following earlier breaches.
Government figures rejected suggestions that the leak was connected to decisions made during the budget process. Officials said the focus should remain on correcting the publishing system rather than assigning blame to the chancellor.
Treasury and Cabinet Office Cited in Review
The report noted the OBR’s reliance on Treasury-managed IT systems since 2023. It found that limited resources and increasing technical demands placed pressure on the small team responsible for managing the release.
The review stated that the Treasury should consider the adequacy of the OBR’s budget, currently valued at £6.4 million, to ensure proper support for future releases.
An external web developer has assisted the OBR for 15 years, including during periods of high workload. The inquiry found the risks attached to this arrangement had grown as online threats changed and technologies shifted.
Previous Early Access Case Revealed
The investigation also revealed that the OBR’s spring statement in March 2025 was accessed early. The review said the likely cause was benign but confirmed that weaknesses existed in the same process.
The Treasury said former chancellors would be informed of the discovery, given the pattern of earlier access.
The report recommended that the OBR stop publishing sensitive material through its WordPress-based system. Instead, it said forecasts should be released through secure government platforms to prevent similar incidents.
Leadership Pressures Continue Despite Resignation
Prime Minister Keir Starmer addressed the situation as pressure grew around Reeves. He stated that while the error was serious, he supported the economic plan set out by the chancellor.
Starmer said the downgrade in productivity provided a starting point that required additional revenue measures. He added that the government would continue to focus on cost-of-living support, public services, and broader economic reform.
He also mentioned that the government intended to strengthen ties with the EU and review the welfare system, noting earlier attempts at reform had not progressed as planned.
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Hughes Steps Aside After Five Years As Chair
Hughes has served as OBR Chair since 2020 and was reappointed for another term in July. In his letter, he said he wanted the OBR to restore confidence after the breach. He stated that implementing the review’s recommendations would allow the organisation to maintain its role as an independent fiscal authority.
The Treasury confirmed an external recruitment process will begin soon. The new chair will require approval from the Treasury Committee once selected.
Final Thoughts
The resignation marks a major moment for the OBR as it works to correct longstanding technical faults in its publishing process. The inquiry’s findings have prompted calls for immediate structural changes, while political debate continues over responsibility for the early release of sensitive fiscal information.
