Damaging events could knock finances off course, says Treasury’s independent forecaster as it downgrades growth outlook
The Treasury’s independent forecaster has warned that Rachel Reeves’s tax-raising budget will still leave the public finances in a “vulnerable” position despite her more than doubling the UK’s financial buffer.
The Office for Budget Responsibility (OBR) said the potential for damaging events – such as a global stock market crash or future pandemic – to knock the government’s finances off course remained high, even while the chancellor increased her headroom from £9.9bn to £22bn.
