Richard Hughes has resigned as chair of the Office for Budget Responsibility, writing to the Chancellor on 1 December. HM Treasury confirmed the departure, with Rachel Reeves thanking him for five years’ service and restating the government’s commitment to the OBR’s independence. A competitive external search will begin in the coming weeks, with the final appointment requiring Treasury Committee consent.

The move follows the premature publication of market‑sensitive Budget material on 27 November, when the OBR’s report appeared roughly 40 minutes before the Chancellor addressed Parliament. Subsequent reporting pointed to process and leadership failings, and Hughes accepted ultimate responsibility.

For investors, this is not just a personnel change. The OBR’s forecasts anchor expectations for borrowing, gilt issuance and the fiscal rule headroom; any doubt about the watchdog’s independence can add a premium to UK risk assets. The Financial Times reported notable market moves around the early disclosure, underlining how tightly trading desks track OBR outputs.

The appointment mechanics matter for credibility. HM Treasury says the next chair will be selected via an open competition, appointed by the Chancellor and subject to Treasury Committee consent-an additional cross‑party check designed to protect the watchdog’s independence. Expect a short list, a pre‑appointment hearing and swift messaging aimed at calming markets.

Only months ago, Parliament’s Treasury Committee approved Hughes for a second and final term, judging him professionally competent and independent. That endorsement on 15 July highlights how quickly events have turned since the Budget leak.

Continuity of forecasting work should be supported by the rest of the Budget Responsibility Committee, which includes David Miles and Tom Josephs. Their presence provides institutional memory as officials prepare the next round of forecast updates and any supplementary material.

What should finance directors and portfolio managers watch now? First, the recruitment timetable: an early, credible appointment would help steady gilt demand and keep the UK’s policy risk premium contained. Second, any OBR update on safeguards for document handling and publication-clear fixes would reassure markets that the leak cannot recur.

Parliamentary scrutiny is already shifting. The Treasury Committee removed Hughes from a planned hearing this week following his resignation, and will likely take evidence on the incident and the recruitment process in due course. Traders and CFOs should track those sessions for signals on timing and interim stewardship.