Why Rachel Reeves is facing a ‘growth emergency’ just two days before the Budget
- A senior cabinet minister has admitted Britain is facing a 'growth emergency' ahead of the Chancellor's Budget.
- The Office for Budget Responsibility (OBR) is expected to issue its most pessimistic economic growth forecasts in 15 years, downgrading prospects until 2029.
- Experts and business leaders warn that proposed Budget measures, such as a mansion tax and bank levy, could further hinder economic growth.
- Chancellor Rachel Reeves is reportedly planning a new mansion tax on properties valued over £2m and other tax increases to address a financial shortfall.
- The OBR's downgrade is attributed to a decline in expected productivity and previous incorrect estimates, with some criticism also directed at the Chancellor's proposed hike in employer national insurance contributions.