Published by Global Banking & Finance Review®
Posted on November 24, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleThe UK's fiscal watchdog is set to downgrade growth forecasts for 2026, affecting budget decisions and potentially leading to tax increases.
LONDON (Reuters) -Britain's fiscal watchdog will downgrade its economic growth forecasts for 2026 and for the remaining years of the current parliament alongside finance minister Rachel Reeves' budget on Wednesday, Sky News reported on Monday.
The independent Office for Budget Responsibility was already expected to cut its key productivity growth forecasts, according to media reports in October.
The OBR's projections underpin the budget choices of British governments. Reeves is likely to raise taxes to fund an expected 20-30 billion-pound ($26.2-39.3 billion) hit to the public finances from the OBR's weaker growth outlook, higher debt costs and other factors.
The Treasury did not immediately respond to a request for comment on the Sky News report.
($1 = 0.7631 pounds)
(Reporting by Sam Tabahriti, writing by Sarah Young, editing by William Schomberg)
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of overall economic activity.
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, typically measured as the percentage increase in real GDP.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly, leading to a loss of confidence and potential economic downturn.
The UK economy encompasses the economic activities and conditions within the United Kingdom, including production, consumption, and trade, influenced by various domestic and international factors.
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