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Chancellor Reeves Faces £20bn Economic Downgrade Ahead of Budget

10/3/2025

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Summary

Story summary

The Office for Budget Responsibility will downgrade Britain's economic forecasts, impacting Chancellor Rachel Reeves.
The OBR expects a downgrade between £15bn and £20bn that will affect Reeves's plan due on Nov 26.
Andrew Goodwin of Oxford Economics says a credibility downgrade is needed due to OBR's optimistic productivity assumptions.
A 0.1 percentage-point downgrade could cost Reeves £9bn or tax increases.

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Story summary

The Office for Budget Responsibility will downgrade Britain's economic forecasts, impacting Chancellor Rachel Reeves.
The OBR expects a downgrade between £15bn and £20bn that will affect Reeves's plan due on Nov 26.
Andrew Goodwin of Oxford Economics says a credibility downgrade is needed due to OBR's optimistic productivity assumptions.
A 0.1 percentage-point downgrade could cost Reeves £9bn or tax increases.