Keir Starmer Defends Rachel Reeves Amid Controversy Over OBR Forecasts and Budget Leak Inquiry
Keir Starmer has defended Chancellor Rachel Reeves following accusations that she misrepresented Office for Budget Responsibility (OBR) forecasts to justify tax rises ahead of the autumn Budget. Critics claim Reeves presented the OBR's economic forecasts as bleaker than they actually were, potentially misleading the public about the state of the economy.
This dispute has become a significant test of Starmer's leadership and suggests a closer alignment between him and Reeves on economic policy moving forward. In response to the controversies, the Financial Conduct Authority (FCA) confirmed that Reeves will not be investigated over pre-budget briefing activities.
Meanwhile, the Treasury has launched an inquiry into budget leaks, a process that has Reeves's full support. Notably, the chair of the OBR resigned after an inquiry revealed the early release of a budget document. These events highlight tensions between Reeves and the OBR, as well as discussions regarding Labour’s longer-term economic plan.
The story, initially reported on Monday 1 December 2025 and last updated on 5 December 2025, continues to play a critical role in shaping economic discourse around the upcoming budget and Labour's fiscal strategy.
