The Guardian

Steeper UK productivity cut of more than £20bn makes tax rises more likely


Rachel Reeves faces bigger-than-expected hit in 26 November budget from revised OBR forecast

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Rachel Reeves will have to account for a bigger-than-expected £20bn hit to the UK public finances in next month’s budget, increasing the likelihood that the chancellor will breach a key Labour’s manifesto pledge not to raise income tax.

The Treasury’s forecaster is preparing a steeper than anticipated cut to UK productivity for the next five years, the Guardian understands.

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Source link : https://www.theguardian.com/business/2025/oct/28/rachel-reeves-uk-productivity-obr-tax-rises-budget

Author : Kalyeena Makortoff, Phillip Inman and Richard Partington

Publish date : 2025-10-28 10:58:00

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Tags : The Guardian