Steeper UK productivity cut of more than £20bn makes tax rises more likely

<p>Rachel Reeves faces bigger-than-expected hit in 26 November budget from revised OBR forecast</p><ul><li><p><a href="https://www.theguardian.com/business/live/2025/oct/28/uk-productivity-downgrade-tax-rise-speculation-reeves-hsbc-pharma-business-live">Business live – latest updates</a></p></li></ul><p>Rachel Reeves will have to account for a bigger-than-expected £20bn hit to the UK public finances in next month’s budget, increasing the likelihood that the chancellor will breach a key Labour’s manifesto pledge not to raise income tax.</p><p>The Treasury’s forecaster is preparing a steeper than anticipated cut to UK productivity for the next five years, the Guardian understands.</p> <a href="https://www.theguardian.com/business/2025/oct/28/rachel-reeves-uk-productivity-obr-tax-rises-budget">Continue reading...</a>