Finance Minister Criticizes Pre-Budget Leak, Defends Tax Strategy

British Finance Minister Rachel Reeves denounces unauthorized leaks about her upcoming budget, impacting the bond market. Accused of misleading the public regarding the economy's status, she denies false control of media briefings. Reeves reassures the decision against capital gains tax changes and remains committed to fiscal policies amidst political scrutiny and evolving economic conditions.

British Finance Minister Rachel Reeves on Wednesday denounced leaks regarding her upcoming budget details that were revealed ahead of her annual parliamentary statement. The leaks, primarily reported by the Financial Times on November 13, claimed a policy reversal on income tax rates, causing unrest in Britain's government bond market.

Reeves addressed the Treasury Committee, emphasizing that the leaks were not part of an authorized briefing and conveyed a skewed perspective of her budget policy. As political adversaries accused her of overstating economic challenges to justify higher welfare-driven tax hikes, Reeves rejected the allegations and clarified misconceptions about economic forecasts.

Despite the controversy, the gilt market stabilized by December, aligning with global trends. Reeves reaffirmed her command over media briefings, stressing leak seriousness. On other policy fronts, she rules out capital gains tax on primary homes and maintains current pension plans, aiming to protect fiscal credibility amid ongoing economic evolutions.

(With inputs from agencies.)