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The Scottish National Party has called on Britain's financial watchdog to investigate whether the Treasury misled the public over the size of the country's fiscal deficit ahead of this week's Budget. The controversy erupted after the Office for Budget Responsibility revealed it informed Chancellor Rachel Reeves on September 17 that the fiscal gap was likely smaller than the £20 billion figure repeatedly cited in government briefings.
SNP Westminster leader Stephen Flynn sent a letter to the Financial Conduct Authority accusing the Treasury of «deliberately false and misleading» briefings about the alleged black hole in public finances. He demanded an «immediate investigation into the accusations of false and deeply misleading Budget briefings emanating from a UK Treasury led by the Chancellor Rachel Reeves.»
The timing raises questions about the Chancellor's public statements. On November 4, Reeves delivered a speech highlighting «consequences for the public finances» - more than six weeks after the OBR had informed her the deficit was smaller than initially estimated. The Bank of England made its interest rate decision just two days after her speech.
Market impact claims
Flynn argued the Chancellor's intervention had wide-ranging consequences. He wrote in his letter: «That intervention from the Chancellor, alongside the briefings on the need to fill the non-existent £20 billion Treasury black hole, had a significant impact on the financial markets, on business investment decisions, on foreign exchange rates and will likely have fed into the Bank of England decision-making around interest rates which took place two days after her speech.»
The SNP leader accused the government's Budget strategy of being «built on a lie» and raised concerns about potential «market manipulation.»
Political fallout
Conservative leader Kemi Badenoch accused Reeves of lying to the public and called for her dismissal. Downing Street denied the Chancellor misled anyone, stating she «talked about the challenges the country was facing.»
A Daily Mail poll conducted yesterday drew more than 20,000 votes, with 95 percent of readers saying British workers should not be able to sue for unfair dismissal from their first day on the job - a measure reportedly planned for the Budget.
The Financial Conduct Authority declined to comment on Flynn's letter. The Treasury was contacted for comment but did not respond.
Note: This article was created with Artificial Intelligence (AI).
