UK launches investigation into potential leak of John Healey’s Budget

The Government Security Group is leading the investigation, a letter published by the Treasury Select Committee has confirmed.

Questions were raised after details of changes to bank taxes appeared in a Bloomberg report ahead of the October 28 Budget.

The article, published at 10.45am, contained accurate information about measures announced later that day.

It appeared to affect bank share prices, with the movements noted in an update published at 11.03am, according to the committee.

The report indicated that the bank corporation tax surcharge would remain below the eight per cent level lenders had feared, and that the increase would be temporary.

Mr Healey subsequently announced that the surcharge would rise from three per cent to six per cent for 15 months from January 1, 2027.

Treasury Committee chair Dame Meg Hillier wrote to the Treasury and the Financial Conduct Authority (FCA) seeking answers about the possible disclosure.

In her correspondence, she said: “There were two elements to the Bloomberg story, namely that the bank surcharge would not reach 8% and that it would be temporary.”

She added: “This appears to have been more than idle speculation, and it had implications for relevant securities.”

The committee asked the FCA to assess whether the incident could amount to an improper release of inside information.

The concern is whether confidential information capable of affecting share prices was disclosed before it was publicly announced.

The FCA said on November 3 that it would work with the Treasury and Cabinet Office and consider evidence to determine whether action under market abuse rules was appropriate.

Confirmation of the investigation does not establish that an unlawful disclosure occurred or that anyone traded improperly.

This is a breaking story, more to follow …