UK Budget Hole of Up To £30 Billion May Threaten Reeves Plans
- Economists warn official forecasts are too upbeat on growth
- Downgrades would eat into money for Chancellor Rachel Reeves
Chancellor of the Exchequer Rachel Reeves faces the prospect of a budgetary hole worth as much as £30 billion pounds ($39 billion) that would hinder the ability of the UK’s new government to fix the country’s ailing public services.
Office for Budget Responsibility forecasts for growth over the next two years are overly optimistic and any boost from the Labour Party’s policies to revive growth could be wiped out by downgrades, according to private sector economists.