Rachel Reeves will have to engage in a major pre-Budget spin operation at the Labour conference in Liverpool over the next few days. The chancellor wants to persuade the nation that, when she raises taxes in November, it will not be her fault.
As we report today, one of the reasons she will have to make the unpopular move is that the Office for Budget Responsibility is going to downgrade its forecast for productivity improvement over the next few years. This means that the OBR thinks that growth will be lower, and so will tax revenues, requiring new tax rises or spending cuts to keep borrowing within the limits that Ms Reeves has set.
