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A shadow Treasury team led by Rachel Reeves has “leaked” sensitive details of tax cuts included in the Budget to the media, a senior government official has claimed, in a dramatic escalation of hostilities between the two parties.
MPs on Tuesday expressed concern that plans to introduce a 2p cut to National Insurance contributions were reported in the media ahead of the Budget earlier this month.
Rishi Sunak told the Liaison Committee that he “regretted” the leaks, particularly in relation to the Budget, and said he had struggled to have sensitive policies explained to the media during his time as Prime Minister.
Government officials insist the leak did not come from inside Whitehall, and details may have been provided to the media by members of the shadow Downing Street in a bid to undermine the government’s big financial announcements. he suggested.
Among the inflammatory claims, a senior government official said: I: “The important thing about a leak is to think about who it benefits. It’s not us. Two of Rachel Reeves’ team were, until recently, Treasury officials.”
The source added: “It was not in our interest to make everything public.”
Labor firmly rejected the claims, branding the press conference “ridiculous”.
A Labor Party spokesperson said: “This is completely false and is as credible a claim as Jeremy Hunt saying he is cutting taxes.”
“The Conservative Party would be better off keeping tabs on soaring mortgage prices, soaring shop prices and soaring NHS waiting lists, rather than holding these ridiculous press conferences.”
Suggestions that Labor may have been proactive in explaining the details of the budget represent a significant escalation in hostilities between the two parties in an election year.
Harriet Baldwin, chair of the Conservative Party’s finance select committee, asked whether the Prime Minister had launched a leak investigation into how details of the National Insurance contribution cuts were explained to the media.
At a liaison committee meeting, Mr Baldwin complained that one of the “key items in the budget” had been leaked to the media and demanded to know whether Mr Sunak knew how it happened.
In response, the prime minister said, “I particularly regret these leaks regarding budget measures.As prime minister, I myself suffered from them.
“Typically, breach investigations are conducted when there is a breach of confidential information. Obviously, identifying those culprits has historically proven difficult, but… It is certainly not in the government’s interest that high budget measures are leaked in advance.”
Mr Sunak and Chancellor Jeremy Hunt have touted a 2p cut in National Insurance contributions starting April 6, adding to the 2p cut in the NIC in January, which will cost the average worker £900 a year. He claimed it would save money.
Huge budget subsidies will cost the Exchequer around £9bn a year, but Tory MPs say tax cuts will boost their party’s standing in the polls despite their high cost. They have expressed concern that they are not being able to do so.