The Resolution Foundation has warned UK Chancellor Rachel Reeves' fiscal headroom could turn into a £5bn deficit by 2029-30, amid a severe deterioration in UK’s economic outlook for the year.
The think tank's warning came after the Organisation for Economic Co-operation and Development (OECD) lowered its forecasts for UK economic growth to 1.4% for 2025 on Monday (17 March), down from the agency's 1.7% forecast in December 2024. OECD downgrades UK growth forecast to 1.4% for 2025 The deterioration in economic conditions is expected to impact the Office for Budget Responsibility's projection for the current balance from a surplus of £9.9bn in 2029-30 to a deficit of around £5bn. "This means that without fresh policy action the chancellor would be breaking her newly-legis...
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