Keir Starmer and Rachel Reeves dealt enormous blow as ‘progress forecast halved’ | Politics | News | EUROtoday

The official progress forecast for 2025 is about to be halved subsequent week in an embarrassing blow to Sir Keir Starmer and Rachel Reeves. The Office for Budget Responsibility (OBR) will reportedly downgrade the anticipated progress fee for the monetary 12 months which runs to March 2026 from 2% to round 1%.

The Chancellor is anticipated to aim to pin the blame on world turbulence attributable to Donald Trump’s tariffs in her spring assertion subsequent week. It is a humiliating blow to the Prime Minister and Ms Reeves who’ve insisted progress is their “number one priority”.

Tory shadow chancellor Mel Stride advised The Telegraph: “Before the election, Labour promised ‘growth, growth, growth’ but their anti-business Budget has killed growth stone dead.

“The Chancellor has relentlessly talked Britain down, raised taxes to record highs and burdened businesses with extreme employment legislation.

“With just six days until Labour’s emergency Budget, the Chancellor must think again.”

The Chancellor has confronted an ongoing backlash for her autumn price range which featured £40 billion of tax hikes.

She is about to ship her spring assertion subsequent Wednesday in opposition to the backdrop of a faltering financial system and tighter headroom relating to the fiscal guidelines she set herself in October.

She might be responding to new forecasts from the OBR, after the Bank of England decreased its forecasts for progress this 12 months.

The progress figures, mixed with higher-than-expected borrowing, are anticipated to place strain on Ms Reeves to extend taxes or slash spending with a purpose to meet the monetary guidelines she set on the price range.

Cuts to welfare that purpose to avoid wasting £5 billion in 2029/30 had been unveiled this week.

It is known that modifications to the tax regime usually are not anticipated subsequent week.