UK growth forecast for 2027 cut to 1% despite Healey budget measures
Briefing by News4U · First published
The OBR downgraded UK growth for 2027 from 1.6% to 1% and warned of higher inflation and weaker living standards amid Middle East conflict.
The Office for Budget Responsibility cut its UK growth forecast for 2027 from 1.6% to 1% despite measures announced by Chancellor John Healey in his first budget, citing the impact of the Middle East conflict on the economy, The Guardian Business reported. [1]
The OBR upgraded this year’s growth from 1.1% to 1.2% but warned inflation would reach 3.5% this year, up from the 2% forecast in March, and said per-person disposable incomes would fall in the short term. [1]
Healey announced £100 payments to 20 million households at a cost of £2.6bn and a temporary rise in bank taxes to fund energy support, leaving £15bn of headroom against the fiscal rule. [1]
Sources
- UK growth forecast for 2027 slashed despite Healey’s budget measures
The Guardian Business · · Full text