Treasury officials under Jeremy Hunt “broke the law” by failing to report a black hole in the public finances to the Office of Budget Responsibility (OBR), MPs have been told. Richard Hughes, chair of the watchdog, made the accusation to the Commons Treasury select committee during a hearing on the Budget.
The intervention comes amid a row over claims made by Rachel Reeves that Mr Hunt failed to disclose a £22bn spending gap ahead of the election. The OBR has since suggested that the real figure was £9.5bn – but that it nevertheless made a difference to its own calculations.
Mr Hunt has denied the existence of a black hole in the public finances, but the OBR’s position raises questions about his actions, and those of permanent secretary to the Treasury James Bowler. Mr Hughes suggested to MPs on the Treasury Committee yesterday that there may have been a “misunderstanding” about the law that governs disclosures.
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