UK economy: Chancellor Rachel Reeves’ plans could be scuppered by ratings downgrades

Chancellor of the Exchequer Rachel Reeves faces a budget hole of up to 30 billion pounds ($39 billion), making it harder for the new U.K. government to fix the country’s ailing public services.

The Office for Budget Responsibility’s forecasts for economic growth over the next two years are overly optimistic and any moves by Labour to boost growth could be undermined by ratings downgrades, private sector economists say.