UK Budget Strains as Productivity Forecast Faces Downgrade
Britain's Office for Budget Responsibility may downgrade its productivity forecast, leading to fiscal challenges for Finance Minister Rachel Reeves. With expectations of increased tax pressures, the forecast downgrade could cause a significant gap in Reeves's budget plans ahead of her annual budget announcement on November 26.
Britain's budget watchdog is poised to lower its productivity outlook, intensifying fiscal pressures for Finance Minister Rachel Reeves as she prepares for her annual budget address on November 26, according to a report by the Financial Times on Tuesday.
The Office for Budget Responsibility (OBR), known for its optimistic past growth forecasts, is now likely to revise its projections downward, increasing speculation of impending tax hikes. Sources suggest a significant fiscal gap may be ahead, potentially impacting Reeves's efforts to balance fiscal targets.
Economists, including those from JP Morgan, predict a downgrade of 0.1-0.2 percentage points in the OBR's budget forecast, potentially costing public finances between 9 and 18 billion pounds annually. This adjustment could challenge Reeves's existing headroom and necessitate tougher fiscal measures.
(With inputs from agencies.)
- READ MORE ON:
- UK
- Budget
- Finance
- Productivity
- Forecast
- Rachel Reeves
- OBR
- Fiscal
- Tax
- GAP
ALSO READ
Ecuador’s central bank raises 2025 GDP growth forecast
Citigroup's Bold Ether Forecast: A Tale of Demand and Sentiment
Ozak AI’s Algorithmic Forecasts Point to 100x Gains—Here’s How It Compares to SOL and XRP
Innovating Predictions: India's Steps Towards Improved Weather Forecasting and Startup Growth
Ashoka University Partners with IMD to Revolutionize Climate Forecasting
Google News