OBR slashes UK growth forecast for 2027 despite Healey’s budget measures

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The UK’s Office for Budget Responsibility sharply downgraded its 2027 growth and living-standards forecasts, citing economic damage from the Middle East conflict and a renewed cost-of-living squeeze. The outlook was lowered despite budget measures that include a £100 payment to households.

Outlook for living standards also downgraded as part of impact of Middle East conflict on economy Healey offers £100 payment to households to help navigate ‘global economic storms’ Budget 2026: key points at a glance Budget 2026 live – latest updates Britain’s economy has taken a multibillion-pound hit as the war in the Middle East drags down growth and triggers a fresh cost of living crisis, according to the government’s independent forecaster. In a report as John Healey announced his first budget, the Office for Budget Responsibility (OBR) issued a sharp downgrade for growth, living standards, and the public finances despite the measures taken by the chancellor. Continue reading...