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

Rachel Reeves faces bigger-than-expected hit in 26 November budget from revised OBR forecastBusiness live – latest updatesRachel Reeves will have to account for a bigger-than-expected £20bn hit to the public finances in next month’s budget, the Guardian understands, as the Treasury’s forecaster prepares to cut predictions for UK productivity.The Office for Budget Responsibility (OBR) is planning to cut its trend productivity growth prediction by 0.3 percentage points, in a move that increases the likelihood of the chancellor announcing tax rises on 26 November. Continue reading...