Reeves faces £30billion hole after OBR’s gloomy forecast

RACHEL Reeves has been handed a gloomy evaluation of the state of the economy and public finances.

- By Mauricio Alencar

WARNING: OBR's Richard Hughes

Analysis by the Office for Budget Responsibility is set to put in motion discussions about likely tax rises and possible savings to fill a £30billion hole.

The OBR’s committee, which includes economists Richard Hughes, David Miles and Tom Josephs, is expected to warn the Chancellor that the UK’s outlook is significantly worse than assumed in March.

Higher debt interest payments and U-turns on welfare savings are likely to add to costs faced by Ms Reeves.