LONDON - Britain's fiscal watchdog will downgrade its economic growth forecasts for 2026 and for the remaining years of the current parliament alongside finance minister Rachel Reeves' budget on Wednesday, Sky News reported on Monday.

The independent Office for Budget Responsibility was already expected to cut its key productivity growth forecasts, according to media reports in October.

The OBR's projections underpin the budget choices of British governments. Reeves is likely to raise taxes to fund an expected 20-30 billion-pound ($26.2-39.3 billion) hit to the public finances from the OBR's weaker growth outlook, higher debt costs and other factors.

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The Treasury did not immediately respond to a request for comment on the Sky News report.