OBR warns of Trump tariff uncertainty as it downgrades UK growth

Treasury watchdog halves growth forecast to 1% for 2025 in report issued alongside spring statement

• Reeves blames cuts on global uncertainty'
• Key points at a glance

Rachel Reeves must cope with lower growth and higher borrowing costs this year, as the Treasury's independent forecaster said the global economic situation was more unpredictable and could worsen if Donald Trump imposed significant trade tariffs.

In a report to coincide with the chancellor's spring statement, the Office for Budget Responsibility (OBR) said the economic outlook was more challenging" and more uncertain" as it forecast that growth would halve this year to 1% from its 2% prediction at the time of October's budget.