Rachel Reeves blamed 'increased global uncertainty' as the budget watchdog slashed its forecast for economic growth. <br /><br />The Office for Budget Responsibility halved its forecast for growth in gross domestic product in 2025 from 2% to just 1%. <br /><br />The watchdog’s assessment also indicated the Chancellor would have missed her goal of balancing the nation’s books without action. <br /><br />Responding to the growth forecast, Ms Reeves said: 'I am not satisfied with these numbers. <br /><br />'That is why we on this side of the house are serious about taking the action needed to grow our economy. Backing the builders, not the blockers.' <br /><br />Despite the dramatic downgrade in 2025, she said the OBR had upgraded its forecasts for subsequent years with GDP expected to increase by 1.9% in 2026, 1.8% in 2027, 1.7% in 2027 and 1.8% in 2029.
