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Budget leak uncanny echo of famous incident from 66 years ago Budget leak uncanny echo of famous incident from 66 years ago
(4 months later)
The apparent leak of George Osborne's entire budget to the London Evening Standard is an uncanny echo of the most famous budget press leak in recent British history. That happened in 1947 when the then Labour chancellor, Hugh Dalton, revealed key budget details to the Star, a now defunct evening paper, which were published before Dalton began his speech. That leak led to Dalton's resignation a day later and established an informal Whitehall rule that no unauthorised domestic policy revelation was more serious than a budget leak.The apparent leak of George Osborne's entire budget to the London Evening Standard is an uncanny echo of the most famous budget press leak in recent British history. That happened in 1947 when the then Labour chancellor, Hugh Dalton, revealed key budget details to the Star, a now defunct evening paper, which were published before Dalton began his speech. That leak led to Dalton's resignation a day later and established an informal Whitehall rule that no unauthorised domestic policy revelation was more serious than a budget leak.
The Dalton leak came when the chancellor, on his way into the Commons chamber before the budget in November 1947, indiscreetly told the Star's John Carvel, whose son Robert and grandson John were both distinguished political journalists: "No more on tobacco; a penny on beer; something on dogs and pools but not on horses; increase in purchase tax, but only on articles now taxable; profits tax doubled." Carvel's story, with its market-sensitive information, was on the streets approximately 20 minutes before Dalton began speaking in the Commons.The Dalton leak came when the chancellor, on his way into the Commons chamber before the budget in November 1947, indiscreetly told the Star's John Carvel, whose son Robert and grandson John were both distinguished political journalists: "No more on tobacco; a penny on beer; something on dogs and pools but not on horses; increase in purchase tax, but only on articles now taxable; profits tax doubled." Carvel's story, with its market-sensitive information, was on the streets approximately 20 minutes before Dalton began speaking in the Commons.
Initially, it looked as if Dalton would not suffer for his indiscretion, though he immediately offered his resignation to the prime minister at the time, Clement Attlee. Attlee, who rarely gave interviews and never briefed the press, was astounded at what had happened. "Talked to the press?", he said when his adviser Francis Williams explained the facts to him. "Why on Earth did he want to talk to the press?"Initially, it looked as if Dalton would not suffer for his indiscretion, though he immediately offered his resignation to the prime minister at the time, Clement Attlee. Attlee, who rarely gave interviews and never briefed the press, was astounded at what had happened. "Talked to the press?", he said when his adviser Francis Williams explained the facts to him. "Why on Earth did he want to talk to the press?"
On the day after the budget, Dalton apologised to the Commons for his "grave indiscretion". Winston Churchill, then leader of the opposition, offered him sympathy and commended Dalton's "very frank manner". Later in the evening, however, Dalton offered his resignation again, and this time Attlee accepted it. Dalton was replaced by Sir Stafford Cripps.On the day after the budget, Dalton apologised to the Commons for his "grave indiscretion". Winston Churchill, then leader of the opposition, offered him sympathy and commended Dalton's "very frank manner". Later in the evening, however, Dalton offered his resignation again, and this time Attlee accepted it. Dalton was replaced by Sir Stafford Cripps.
In his retirement, Attlee was more forthcoming about the incident. "Perfect ass," he said of Dalton in a Granada TV interview. "His trouble was that he would talk. He always liked to have a secret to confide to somebody else to please him. He did it once too often."In his retirement, Attlee was more forthcoming about the incident. "Perfect ass," he said of Dalton in a Granada TV interview. "His trouble was that he would talk. He always liked to have a secret to confide to somebody else to please him. He did it once too often."
The Dalton leak would probably never have happened but for two unusual factors. The first was that MPs were still sitting in the House of Lords chamber in 1947 because the House of Commons, badly bombed in the wartime blitz, was still being rebuilt. As a result the chancellor had to walk past lobby journalists on the way to the Lords, a hazard that Osborne does not have to face. The second was that Dalton's political minder Douglas Jay, who would normally have been on hand to fend off the journalist, had been sent on ahead to check that there was a glass of water at the dispatch box for Dalton during his speech.The Dalton leak would probably never have happened but for two unusual factors. The first was that MPs were still sitting in the House of Lords chamber in 1947 because the House of Commons, badly bombed in the wartime blitz, was still being rebuilt. As a result the chancellor had to walk past lobby journalists on the way to the Lords, a hazard that Osborne does not have to face. The second was that Dalton's political minder Douglas Jay, who would normally have been on hand to fend off the journalist, had been sent on ahead to check that there was a glass of water at the dispatch box for Dalton during his speech.
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