The Office for Budget Responsibility (OBR) has estimated that a worse economic outlook will raise government borrowing close to £100bn in 2026-27, around £70bn higher than the fiscal watchdog’s budget deficit calculations of just £31.6bn in March.
An ally of the chancellor told the Financial Times that chancellor Jeremy Hunt's Autumn Statement will heavily focus on fixing the UK's public finances because it was "hard to sugar coat" the OBR forecasts. However, the source also insisted that the Treasury was not planning on making the looming recession worse by raising taxes excessively and spending cuts. Speaking to the BBC on Sunday (13 November), Hunt acknowledged the need to take action after the dire OBR forecasts, noting that "we are going to see everyone paying more tax" and "we are going to see spending cuts". Approx...
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