The Office for Budget Responsibility (OBR) has published its economic and fiscal outlook before Rachel Reeves delivers her Budget, in what appears to be an error.
On Wednesday afternoon, the chancellor will deliver her much-anticipated autumn Budget.
But after weeks of speculation, the OBR has published its forecast for the public finances and the UK economy before Reeves’ speech, the BBC reports.
This has therefore leaked a number of major announcements set to be confirmed by the chancellor, before she had the chance to speak in the Commons.
The OBR has apologised for releasing the report, blaming a technical error.
It said in a statement: “A link to our economic and fiscal outlook document went live on our website too early this morning. It has been removed.
“We apologise for this technical error and have initiated an investigation into how this happened.
“We will be reporting to our oversight board, the Treasury, and the Commons Treasury Committee on how this happened, and we will make sure this does not happen again.
“Our economic and fiscal outlook and supporting documents will be released when the Chancellor has finished her speech.”
The headline announcements are that the government will be scrapping the two-child benefit cap and freezing income tax thresholds until the end of the 2030/31 financial year.
The report also seems to confirm Reeves will introduce a ‘mansion tax’ and the government’s fiscal headroom will expand to £22bn in five years’ time.
But the OBR’s report also lowered the growth forecast for the UK for the next five years, saying: “GDP is forecast to grow by 1.5 per cent on average over the forecast, 0.3 percentage points slower than we projected in March.”
It also predicts inflation will be higher than previously forecast. The OBR expects inflation to reach 3.5% for this year and has lifted next year’s forecast from 2.1% to 2.5%. The OBR maintains its 2% estimate for 2027 and the following two years.
Reacting on social media, political journalists have said the move, which appears to have been an accident, is “unprecedented.”
The reports also states that fuel duty will be frozen at its current rate until September 2026 whilst a new mileage tax on electric vehicles will be introduced.
It states other tax changes will “raise £11 billion by 2029-30.”