Fiscal Chief's Sudden Resignation After Embarrassing Budget Leak

Richard Hughes, head of Britain's fiscal watchdog, resigns following an unintentional release of Finance Minister Rachel Reeves' budget details. The incident, linked to IT and leadership failures, has strained relations with the Office for Budget Responsibility. Hughes steps down to take responsibility and restore the agency's credibility.

Richard Hughes, the head of Britain's fiscal watchdog, has resigned following an unintentional leak of finance minister Rachel Reeves' budget details last week. The incident is attributed to IT weaknesses and leadership failures within the Office for Budget Responsibility (OBR), which Hughes chaired. His decision to step down comes amid strained relations between Reeves and the agency.

Hughes began his tenure as chair in 2020, with Reeves backing him for a second term in May. The inadvertent early release of the OBR's assessment came due to pre-existing IT issues, leading to criticism and concern over the agency's reputation. The Economic and Fiscal Outlook report was mistakenly made accessible online just before Reeves presented the budget in parliament.

The OBR has vowed to improve its systems to prevent future occurrences. In the wake of the leak, non-executive directors declared it as the worst failure in the agency's 15-year history, prompting Hughes to resign to demonstrate accountability and help the agency recover.

(With inputs from agencies.)