Alex Kerr, a UK economist at Capital Economics, said the OBR downgrade could force the chancellor to implement either further spending cuts or tax rises. He said a recent U-turn on cuts to the winter fuel allowance, downward revisions to the OBR’s growth forecasts and higher borrowing costs “may mean that to maintain her current £9.9bn buffer, Reeves has to raise £13bn-£23bn later this year”.