Reeves Set to Break Fiscal Rules After Outlook Cut by Watchdog

Rachel Reeves faces a new risk of having to make spending cuts after the UK government’s fiscal watchdog downgraded its growth forecast, leaving Britain’s finance minister scrambling to meet her budgetary rules when a key report is published next month.

The forecast delivered last week to the chancellor by the Office for Budget Responsibility left Reeves facing a small deficit when it delivers its update on the UK economy on March 26, people familiar with the matter told Bloomberg. They requested anonymity discussing the preliminary and private forecast, the first of five the OBR will produce ahead of its report. ...