Leaked forecast puts Chancellor at risk of a Budget deficit and rebellion

RACHEL Reeves has been dealt a major blow in the public finances watchdog's first verdict ahead of her Spring spending review.

- Christian Calgie

According to a leaked briefing, the Office for Budget Responsibility will say the Chancellor is on course for a Budget deficit.

This would put Ms Reeves at risk of breaking her fiscal rule that day-to-day spending must be paid with taxes, not borrowing.

Cuts

The OBR forecast also suggests Britain is on course for either higher taxes or spending cuts.

And that could prompt a major rebellion by Labour MPs.