British finance minister Rachel Reeves announced a big tax-raising budget on Wednesday that will take more money from workers, people saving for a pension and investors to give herself greater room to meet her deficit-reduction targets, Reuters reported.

Britain's fiscal watchdog cut its forecasts for economic growth for the coming years - a setback for struggling Prime Minister Keir Starmer who promised voters last year he would speed up the economy.

But the Office for Budget Responsibility (OBR) said the government will now have more than double its previous buffer for meeting its fiscal targets, something closely watched by investors assessing Britain's borrowing risks, according to Reuters.