Fall in productivity puts pressure on Hammond before budget

OBR also expected to cut productivity forecasts, wiping out about two-thirds of chancellor's 26bn budget 'war chest'

The productivity of UK workers fell in the three months to June, piling pressure on the chancellor, Philip Hammond, before his budget next month.

Despite increasing numbers of hours put in by workers, labour productivity as measured by output per hour fell by 0.1% in the three months to June, according to the Office for National Statistics. That continues a fall started earlier this year, albeit at a slower pace, from the 0.5% drop recorded in the three months to March.

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