Rachel Reeves blamed 'increased global uncertainty' as the budget watchdog slashed its forecast for economic growth.
The Office for Budget Responsibility halved its forecast for growth in gross domestic product in 2025 from 2% to just 1%.
The watchdog’s assessment also indicated the Chancellor would have missed her goal of balancing the nation’s books without action.
Responding to the growth forecast, Ms Reeves said: 'I am not satisfied with these numbers.
'That is why we on this side of the house are serious about taking the action needed to grow our economy. Backing the builders, not the blockers.'
Despite the dramatic downgrade in 2025, she said the OBR had upgraded its forecasts for subsequent years with GDP expected to increase by 1.9% in 2026, 1.8% in 2027, 1.7% in 2027 and 1.8% in 2029.
