Summary
Chancellor Rachel Reeves plans to challenge negative predictions about the UK's economy. The Office for Budget Responsibility (OBR) is expected to lower its forecast for UK productivity, which could lead to a larger deficit in the country's budget. Reeves may consider raising taxes to meet financial rules in the upcoming Budget.
Key Facts
- Chancellor Rachel Reeves plans to present her Budget next month.
- The Office for Budget Responsibility may lower its UK productivity forecast, impacting the budget.
- A reduction in productivity could create a £20 billion gap in tax and spending rules.
- Reeves is expected to address this by possibly increasing taxes in the Budget.
- Economists predict Reeves will need to raise taxes to fill a £22 billion gap in public finances.
- Reeves blames issues like Brexit and the pandemic for the current economic situation.
- She plans to invest in infrastructure like the NHS and transport to improve productivity.
- Reeves ruled out returning to austerity, suggesting tax rises as the likely option.
