UK fiscal watchdog set to downgrade growth forecasts ahead of budget
Britain’s independent Office for Budget Responsibility (OBR) is expected to lower its economic growth forecasts for 2026 and the remaining years of the current parliamentary term. The revisions will accompany Finance Minister Rachel Reeves’ budget on Wednesday.
The OBR had already signaled a likely cut to productivity growth projections in October, highlighting challenges for the UK economy in the coming years, News.Az reports, citing Reuters.
The OBR’s forecasts play a central role in shaping government budget policy. With slower growth and rising debt costs, Reeves may propose tax increases to offset an estimated £20-30 billion ($26-39 billion) hit to public finances.
The move reflects a broader concern over weaker economic performance and rising fiscal pressures as the government seeks to balance investment, borrowing, and spending priorities.
A Treasury spokesperson did not immediately respond to requests for comment on the Sky News report.
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