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Fears Grow over Big Tax Rises in Budget as Reeves Hit with £20bn Productivity Blow
The Office for Budget Responsibility downgraded UK productivity forecasts, creating a £20 billion budget gap and raising the risk of tax increases, economists warn.
- Rachel Reeves, the Chancellor, acknowledged that she faces tough economic challenges and stated, "We don’t simply accept the forecasts but we defy them."
- The Institute for Fiscal Studies warned that Reeves may need to find £22 billion in tax increases or spending cuts to meet fiscal goals.
- Media reports suggest that the Office for Budget Responsibility could downgrade productivity forecasts, potentially creating a £20 billion finance gap.
- Reeves emphasized economic growth as a priority and mentioned that investing in infrastructure and technology was crucial for productivity.
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The answer to Britain's productivity crisis is here
This is Armchair Economics with Hamish McRae, a subscriber-only newsletter from The i Paper. If you’d like to get this direct to your inbox, every single week, you can sign up here. The Office for Budget Responsibility (OBR) is expected to downgrade its forecasts for productivity growth ahead of the Budget next month. Since that would cut Government revenue and increase borrowing, this is seen as a new blow for Chancellor Rachel Reeves, adding £…
·London, United Kingdom
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Coverage Details
Total News Sources30
Leaning Left5Leaning Right2Center10Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
L 29%
C 59%
12%
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