Chancellor, who is expected to announce tax rises and spending cuts, says effect of leaving bloc worse than predicted
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Rachel Reeves has blamed a heavier than anticipated blow from Brexit and austerity for forcing her to take action to balance the books at next month’s autumn budget.
Speaking to business leaders in Birmingham for the government’s first regional investment summit, the chancellor said leaving the EU had caused more damage than official forecasters had expected.
Hinting that she was braced for sharply downgraded growth forecasts from the Treasury’s independent watchdog, the Office for Budget Responsibility (OBS), Reeves said action was needed.
