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flag UK Chancellor announces severe spending cuts and tax rises due to halved 2025 GDP growth forecast.

flag UK Chancellor Rachel Reeves announced deep spending cuts and tax hikes to address a halved GDP growth forecast of 1% for 2025, down from 2%. flag The Office for Budget Responsibility warns of a 54% chance that fiscal targets will be met, suggesting further tax increases may be necessary in autumn. flag Reeves aims to stabilize the economy by cutting welfare benefits and foreign aid. flag The measures come amid rising inflation and higher borrowing costs, with economists cautioning that the economic outlook remains fragile.

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