The UK Treasury is under fire for not disclosing a £9.5 billion gap in the budget, raising concerns over transparency and legality.
- The Office for Budget Responsibility (OBR) claims the missing data impacts their financial forecasts, labeling it a systematic failure.
- Chancellor Rachel Reeves’ inherited budget “black hole” of £22 billion is partly supported by these hidden costs.
- Former Chancellor Jeremy Hunt critiques the timing of this disclosure, suggesting political motives.
- Concerns grow about the fiscal impact as the government pushes towards electric vehicles, potentially affecting fuel duty revenues.
The UK Treasury is facing serious questions after being accused of failing to reveal £9.5 billion in budget pressures, an act described as potentially unlawful by the Office for Budget Responsibility (OBR). This omission has led to questions about transparency and the integrity of financial processes within the government.
The OBR has expressed that the lack of disclosure regarding key departmental budget data, mandated by the Budget Responsibility and National Audit Act 2011, has created a “materially different” outlook on the country’s public finances. OBR chief Robert Hughes testified to members of Parliament that this failure to share crucial information has hindered the body’s ability to forecast accurately, which he termed as a “systematic failure” within the Treasury.
While Hughes does not suspect any malicious intent, he noted that this lapse has shifted the relationship between the OBR and the Treasury from one of pure trust to “trust but verify.” This issue comes in the wake of Chancellor Rachel Reeves’ statement about inheriting a £22 billion budget “black hole,” a figure partially corroborated by the recently uncovered £9.5 billion in hidden costs.
Former Chancellor Jeremy Hunt has expressed skepticism about the timing of the report, suggesting it could be used as a “political weapon.” His concerns hint at the broader political implications that might unravel as further details emerge about the budget discrepancies.
Alongside this budgetary controversy, there is an emerging concern over the government’s strategy to transition to electric vehicles. As fuel duty from petrol and diesel cars—a source anticipated to generate £27.2 billion during this parliament—begins to decline with the 2035 ban on new non-electric vehicle sales, a significant gap in public finances could occur. Robert Hughes has warned that this transition might create financial pressures comparable to recent tax increases.
The scrutiny over the Treasury’s undisclosed budget gap underscores the need for clear fiscal transparency and planning.
