The chairman of the Office for Budget Responsibility, Richard Hughes, has resigned following what an internal investigation labelled the most serious institutional failure in the watchdog’s 15-year history. His departure comes after a key document was published online ahead of chancellor Rachel Reeves’s statement.

In a resignation letter sent to the chancellor and Dame Meg Hillier, the chair of the treasury select committee, Richard Hughes took “full responsibility” for the breach found in the OBR’s investigation and the failure to handle sensitive information.

The investigation found that the OBR analysis was available online via a hidden URL and was accessed 43 times on 32 different devices between 11:30 and 12:08 on the morning of the budget. The same report concluded that the mishap “inflicted heavy damage on the OBR’s reputation” whilst being “severely disruptive” to the chancellor but added it was advertent.

Hughes believed that he must resign in the “best interest of the OBR” and to “take full responsibility for the shortcomings identified in the report.”
As stated in his letter, he believes the OBR can “quickly regain and restore the confidence and esteem” but admitted for this to happen he must play his part in “enabling the organisation to quickly move on from the regrettable decision”. 

The early release confirmed several of Reeves’ headline budget decisions, which included a three-year freeze on income tax and National Insurance thresholds. This confirmation came before the chancellor had a chance to officially announce them, throwing her budget into chaos.

The leak threw the presentation of the budget into disarray, which saw Reeves face increased scrutiny as she faced allegations from Conservative MPs of misleading the public over the state of the nation’s finances.

Prime Minister Sir Keir Starmer defended his chancellor on Monday saying he was “proud” of the budget and rejecting claims that Reeves was attempting to deceive voters. He noted that the Government had committed to a number of things including cutting borrowing which meant revenue would have to be raised elsewhere.

Whilst Starmer continues to defend chancellor Rachel Reeves, Conservative party leader, Kemi Badenoch said “someone has resigned as a result of the budget chaos… but it isn’t Rachel Reeves.” Before claiming Reeves was using Hughes as a “human shield”.

Richard Hughes, first took up the job during the covid pandemic in October 2020, and was just months into his second five-year term as OBR chairman.

More is set to develop as members of the OBR are set to appear before Dame Meg Hillier and the Treasury Committee to discuss the inquiry. Dame Meg Hillier has confirmed that Richard Hughes will not be attending.