If UK plc was a publicly quoted entity then the City’s regulators would have to be all over them for potential market abuse.
A series of market-moving policy kites have been flown in recent months to test support for policy ideas and create a fever pitch excitement around the UK Budget.
The Office for Budget Responsibility then joined in with a credible impression of ‘please may I have a P45’ by erroneously issuing the Budget content ahead of time – again moving markets.
I am in no way suggesting any nefarious activity nor criticising a genuine mistake – who hasn’t sent an email and had that sinking feeling of not checking recipients carefully first, only to enjoy the relief of finding it went to the right people and had the right data in it.
My point is that such a price-sensitive announcement as The Budget should be treated like a PLC announcement on results, transactions, etc. – and not leaked piecemeal in the months leading up to the announcement. A key financial statement, such as the Budget, should be formally released before the UK markets open.
Granted, this removes the pageantry around the House of Commons and denies the Chancellor an end-of-year pantomime role, but we have to be realists, and also maybe wonder (in an age of cynicism) who, if anyone, might possibly have benefited from such market moves.
