Britain can defy gloomy economic forecasts, says Rachel Reeves

Exclusive: Fiscal watchdog predicts productivity downgrade will leave chancellor with 20bn gap to fill in budget

• Too many want to do Britain down - Labour will defy the doomsayers and beat the forecasts

Rachel Reeves has said Britain can defy gloomy economic forecasts after the fiscal watchdog infuriated ministers by predicting a productivity downgrade would leave her with a 20bn gap to fill in her forthcoming budget.

The chancellor said she was determined not to simply accept the forecasts" - which increase the likelihood she will break a key Labour manifesto pledge not to raise income tax - but would instead prove the predictions wrong.