The Office for Budget Responsibility is set to lower its UK GDP growth forecasts for the next four years, according to speculation ahead of the government's Autumn Budget this Wednesday.
Source: Sharecast
Sky News reported that the fiscal watchdog will cut its economic growth outlook for every year of the rest of the current parliament, as it publishes its twice-yearly growth projections alongside the Budget.
Reports earlier this year suggested that the OBR would lower its productivity forecasts, leaving a £20bn hole in public finances to be plugged by increased taxes – widely expected to be unveiled by chancellor Rachel Reeves this week.
In March, the OBR predicted that real UK GDP would expand by 1.0% in 2025, half the 2.0% rate assumed last October, before growing by 1.9% in 2026 – helped by easing monetary policy, falling gas prices improvements in "slack in the economy".
At the time, the public body predicted a budget target headroom of £9.9bn, or 0.3% of GDP.
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