Chancellor Rachel Reeves may need to consider spending cuts as economists raise doubts about the forecasts from the Office for Budget Responsibility following a decline in productivity. Ben Nabarro, a UK economist at Citigroup, cautioned that even a small drop in productivity growth could lead to a substantial financial shortfall of £7 billion to £8 billion. Official data revealed a 2.4 percent contraction in labor productivity during the third quarter of 2024. Economist Andrew Wishart remarked that the OBR's projection of a consistent productivity recovery now seems unrealistic given the sluggish economic growth.