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The news will come as a major blow to the government, which has put economic growth at the centre of its plan for Britain
Millie CookePolitical CorrespondentMonday 24 November 2025 09:33 GMTComments
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Britain's fiscal watchdog will reportedly downgrade its economic growth forecasts for every year of the rest of this parliament when the chancellor announces her Budget this week.
The news will come as a major blow to the Labour government, which has put economic growth at the centre of its plan for Britain.
Rachel Reeves will deliver her Budget on Wednesday after a whirlwind of speculation about which taxes she will hike to help balance the books, including the expectation - and then apparent U-turn on - an increase to income tax.
The OBR will publish its latest forecasts following the chancellor’s Budget speech, with sources telling Sky News that it will downgrade its growth forecasts for 2026 and for the remaining years of the current parliament.
The watchdog was already expected to downgrade its official productivity forecasts, leaving a gap in the public finances of around £20bn.
Ms Reeves is poised to raise taxes in an effort to bridge the multibillion-pound gap in her spending plans and rescue Britain’s ailing public finances.
The Treasury has been contacted for comment.
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