Treasury investigates possible budget leak amid Chancellor Healey's new devolution measures

Chancellor John Healey delivered his first budget to the House of Commons, outlining a series of fiscal measures aimed at easing the cost-of-living pressures and granting greater fiscal autonomy to city mayors. He announced that revenue from business rates and income tax would be retained locally, allowing London mayor Sadiq Khan and other city leaders to fund major infrastructure projects. The package also includes an increase in the small-business rates relief threshold for hospitality firms and a £10 million alcohol duty relief for smaller brewers.

Dame Meg Hillier, chair of the Commons Treasury Committee, wrote to Treasury Permanent Secretary James Bowler and the Financial Conduct Authority, requesting an explanation of how a Bloomberg report that accurately forecasted a temporary rise in bank taxes entered the public domain before the budget announcement. Hillier described the report as having moved markets and urged an urgent investigation.

Prime Minister Andy Burnham defended the budget, citing measures such as a council-tax cut for 20 million households, the removal of business-rates liabilities for 70 000 firms, and a planned VAT exemption on electricity bills. He said the fiscal rules were met and expressed confidence that the economy would improve.

Opposition figures offered reactions: Reform UK leader Nigel Farage said he avoided the Commons to prevent a potential conflict, while Green Party MP Dr Ellie Chowns criticised the budget as lacking ambition on climate and wealth taxation.

The Treasury has not yet commented on the alleged leak.