- The right kind of pre-announcements generate hype – and send share prices soaring
- Can the government learn from companies’ experiences?
There was a time when the content of a fiscal event was a closely guarded secret. In 1996, the Daily Mirror public-spiritedly handed back a leaked copy of the Budget. Then-editor Piers Morgan reportedly told readers that “publication of so much detail... before the chancellor’s speech could have forced the stock market to close and caused chaos in the international money markets”. In 1947, the chancellor Hugh Dalton revealed key Budget details to an evening newspaper. Dalton apologised to the Commons for his “grave indiscretion” – and duly resigned.
But in this month’s Budget, there were few surprises. Headline measures such as a further 2p reduction in the rate of national insurance and a consultation on a British Isa were all well trailed in advance. So common have these leaks become that when the chancellor does manage to surprise us, we say that they have ‘pulled a rabbit out of the hat’. Get it right, and voters and markets can be pleasantly surprised.