UK Watchdog to Cut Productivity Forecast by 0.3 Points, FT Reports
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Commuters on the concourse at London Waterloo railway station in London.
Photographer: Jose Sarmento Matos/BloombergFacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Ellen MilliganOctober 27, 2025 at 8:06 PM UTCBookmarkSave
The UK’s fiscal watchdog is expected to downgrade its productivity growth forecast by about 0.3 percentage points, amounting to a financial hit to the public finances of more than £20 billion, the Financial Times reported.
The Office for Budget Responsibility’s cut to productivity has been widely anticipated by the government and economists in the run-up to Chancellor Rachel Reeves’ budget next month. Bloomberg previously reported that she faces a black hole of as much as £35 billion, largely driven by the downgrade, as well as a failure to push through welfare savings, the rising cost of borrowing and the impact of US President Donald Trump’s global tariff war.
Source: Original