Rachel Reeves faces a damning verdict on the UK economy’s by the OBR in November.

The Office for Budget Responsibility (OBR) has reportedly told Chancellor Rachel Reeves that it will downgrade productivity forecasts for the UK economy, blowing a hole in the public finances and making tax hikes all but guaranteed at this year’s November Budget.

In another setback for the Labour government, the OBR has informed the Treasury that it is set to downgrade figures laid out in March that kept Reeves’ small £9.9bn headroom intact.

Officials briefed the Financial Times that Reeves would look to dodge blame for the downgrade by claiming that the previous Conservative government’s poor record on productivity had forced the fiscal watchdog to revise its calculations.

A source told the newspap

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