London, UK / Bloomberg: Britain’s financial watchdog, the Financial Conduct Authority (FCA), will review whether any market manipulation occurred following the accidental early release of the Office for Budget Responsibility (OBR)’s budget forecasts.
The OBR document, posted online roughly one hour before Chancellor Rachel Reeves delivered her Budget statement, contained sensitive Treasury policies that move financial markets. According to sources familiar with the matter, the FCA will examine whether the leak resulted in any abuse of inside information.
The early release sent financial markets fluctuating, with the benchmark 10-year UK government bond yield dropping 20 basis points before recovering later. This is the first time in the OBR’s 15-year history that such a leak has occurred.
Investigation and Accountability
OBR Chairman Richard Hughes has apologized for the error, saying he “felt personally mortified,” and offered to resign if he loses the Chancellor’s confidence. The OBR appointed Ciaran Martin, former CEO of the National Cyber Security Center, to assist in the investigation. Independent oversight board members Sarah Hogg and Susan Rice will oversee the inquiry. Preliminary results are expected by Monday.
The FCA declined to comment, and the OBR has not issued an official statement yet. The probe underscores the importance of timely and secure release of market-sensitive information in maintaining investor confidence.
