Rachel Reeves’s team behind Budget tax cut leak, Government sources claim

Rachel Reeves’s Shadow Treasury team ‘leaked’ sensitive details of tax cuts contained in the Budget to the media, senior Government sources have claimed in a dramatic escalation in hostilities between the parties.

MPs raised concerns on Tuesday that plans to introduce a 2p cut to national insurance contributions appeared in the media in advance of the Budget earlier this month.

Rishi Sunak told the Liaison Committee that he “deplores” leaks, particularly in relation to the Budget and that he suffered sensitive policies being briefed out to the media during his time as chancellor.

Senior Government sources insisted the leaks did not come from within Whitehall and suggested that the details may have been given to media outlets by members of the Shadow Chancellor’s office in a bid to undermine the Government’s big fiscal announcement.

In an incendiary claim, a senior Government source told i: “The key with the leaks is to think about who it benefits, it wasn’t us. Two of Rachel Reeves’s team were until recently Treasury officials.”

The source added: “It was not in our interest to have it all out there.”

Labour has staunchly rejected the claims, branding the briefings as “ridiculous”.

Labour spokesman said: “This is completely untrue and a claim that is about as credible as Jeremy Hunt saying he is cutting taxes.

“The Conservative Party would be better served getting a grip of spiraling mortgages, prices rising at the shops and exploding NHS waiting lists than engaging in ridiculous briefing like this.”

The suggestion that Labour may have been actively briefing out Budget details represents a major ratcheting up of hostilities between the two parties in an election year.

Tory chair of the Treasury Select Committee Harriet Baldwin asked whether the Prime Minister had launched a leak inquiry into how details of the national insurance contributions cut were briefed to the media.

Speaking during the Liaison Committee meeting, Ms Baldwin complained that one of the “main items of the Budget” had been leaked to the media and demanded to know whether Mr Sunak knew how it had happened.

In response, the Prime Minister said: “I deplore these leaks, particularly around Budget measures. I suffered from them as chancellor myself.

“In general, leak inquiries are instituted when there is a leak of sensitive information. Obviously it has historically proved difficult to identify the culprits of those, but… it’s certainly not in the Government’s interest to have sensitive Budget measures leaked in advance.”

Mr Sunak and his Chancellor Jeremy Hunt trumpeted the 2p cut in national insurance contributions which is due to begin from 6 April, claiming it represents a saving of £900 a year for the average worker coming on top of January’s 2p cut in NICs.

The big Budget giveaway will cost the exchequer roughly £9bn a year, but Tory MPs have raised concerns that despite the large cost of the tax cut, it has failed to boost the party’s position in the polls.