UK Chancellor Rachel Reeves is under intense political pressure after allegations that she exaggerated the country's fiscal deficit to justify a planned £30 billion tax increase. The Office for Budget Responsibility (OBR) released details of its discussions with Reeves, revealing that Treasury officials had overstated the deficit in recent weeks to build support for higher taxes. OBR chief Richard Hughes stated that the government never faced a deficit exceeding £2.5 billion and that Reeves had been informed of a £4.2 billion surplus before her public statements suggesting worsening finances. The Treasury accused Hughes of breaching confidentiality by disclosing internal discussions, while Reeves claimed the OBR had not provided accurate data. The dispute has sparked a political storm, with opposition figures calling for Reeves’ resignation, accusing her of misleading the public for political gain. Hughes is set to appear before the Treasury Select Committee next week to explain the controversy, which has drawn comparisons to past fiscal clashes under Liz Truss’s government.