Tories urge financial regulator to investigate Reeves and Treasury over Budget build-up

Shadow chancellor Mel Stride has called for the UK's financial regulator to investigate "possible market abuse" by people working in the Treasury and Downing Street in the run-up the Budget.

The move comes as Chancellor Rachel Reeves denied she misled the public over the state of the country's finances, after it emerged she and officials had been told they were in better shape than widely thought - but she still gave briefings that the Tories described as overly pessimistic.

The Conservatives have called on her to resign and Stride sent a letter to the Financial Conduct Authority (FCA) requesting a probe into potential market manipulation.

"Confidential market sensitive information appears to have been spun, leaked and misused - and markets, businesses and families have paid the price," he claimed.

The FCA regulates financial services firms in the UK and part of its role is handling and investigating reports of market abuse, such as insider dealing or market manipulation.

In his letter to the head of the regulator, Stride outlined briefings which were made in the run-up to the Budget over the picture of the country's finances, the economy, and speculation over tax rises.

"It seems increasingly clear that the Chancellor has been giving an inaccurate picture of the economic and fiscal context and this appears to be driven by political considerations," he wrote.

He claimed "leaks and spin" from the Treasury had led to market speculation being "rife and the gilt markets volatile".