UK Treasury Faces Legal Probe Over Budget Overspend

The UK Treasury is under scrutiny for potentially breaking the law by not disclosing a £9.5 billion overspend prior to the March Budget, as revealed by Richard Hughes, chair of the Office for Budget Responsibility (OBR). This omission led to a 'systemic failure' in the forecasts prepared for the budget, which Labour claims resulted in inheriting a £22 billion deficit. The issue came to light when current Chancellor Rachel Reeves highlighted the shortfall after taking office. Meg Hillier, chair of the Treasury committee, has called for an investigation into the legal implications of the Treasury's actions. Hughes emphasized that the oversight undermined the OBR's economic forecasts, but he assured that new processes are being implemented to prevent similar issues in the future. The Treasury has yet to comment on these allegations.