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OBR Downgrades Growth Forecast, Blames Brexit for £20B Hit

10/28/2025

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Summary

Story summary

The Office for Budget Responsibility (OBR) will lower its productivity growth forecast by 0.3 percentage points, creating a financial impact above £20 billion.
The downgrade comes ahead of Chancellor Rachel Reeves' budget amid concerns of a potential £35 billion shortfall.
The OBR indicates Brexit may have caused a permanent 4% reduction in the UK economy.
Chancellor Rachel Reeves attributes the productivity decline to Brexit and past austerity measures, despite pushback.

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Story summary

The Office for Budget Responsibility (OBR) will lower its productivity growth forecast by 0.3 percentage points, creating a financial impact above £20 billion.
The downgrade comes ahead of Chancellor Rachel Reeves' budget amid concerns of a potential £35 billion shortfall.
The OBR indicates Brexit may have caused a permanent 4% reduction in the UK economy.
Chancellor Rachel Reeves attributes the productivity decline to Brexit and past austerity measures, despite pushback.