Chancellor Rachel Reeves is confronting the prospects of budget cuts as economists cast doubts on the Office for Budget Responsibility's forecasts following a decline in productivity. According to Citigroup's UK economist Ben Nabarro, even a slight decrease in productivity growth could lead to a substantial financial shortfall ranging from £7 billion to £8 billion. Official data reveals a 2.4 percent contraction in labor productivity during the third quarter of 2024. Economist Andrew Wishart remarked that the OBR's anticipation of a lasting productivity recovery is becoming questionable amidst lackluster economic conditions.