"Reeves called that news conference because she wanted to prepare the ground for a big Budget full of difficult choices. And let's be clear: much of what we heard from the Chancellor in her breakfast speech that morning almost four weeks ago reasonably laid the ground for what was to come. She made it clear that big tax rises were coming, and she was right."
"Crucially, she also talked about productivity, a measure of the output of the economy per hour worked. The forecaster and watchdog, the Office for Budget Responsibility, was expected to revise down its estimate for productivity growth. This decision by the OBR had big implications for Reeves impacting the numbers, spreadsheets and therefore the calculations and trade offs she would have to make. In isolation, that made things harder for her, without question."
An unprecedented pre-Budget news conference on 4 November was convened to prepare for a Budget requiring difficult choices. The Chancellor warned of substantial tax rises and prioritised measures to address the cost of living. A goal for increased fiscal "headroom" and protection of long-term investment spending were stated and later delivered. Productivity forecasts were expected to be revised down by the Office for Budget Responsibility, worsening fiscal calculations and constraining options. Those public statements were accurate, but the Chancellor possessed additional information at that time that was not disclosed before the Budget.
Read at www.bbc.com
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