Domestic economic woes will wreck Reeves’ budget plans, says thinktank

The forecast said low growth would place the Bank of England in difficult position ahead of next interest rate decision

Slow growth and persistent inflation will wreck Rachel Reeves' budget plans and increase the likelihood of further tax rises in the autumn, according to forecasts by a leading economic thinktank.

The National Institute of Economic and Social Research (NIESR) said the UK was on course to suffer a long period of stagnation, cutting tax receipts and forcing the chancellor to balance the books only months after a tough budget in March that reduced welfare benefits.