OBR cuts UK growth outlook for 2027 as Middle East war hits economy
The Office for Budget Responsibility has lowered its forecast for UK economic growth in 2027, The Guardian reported.
The Office for Budget Responsibility has lowered its forecast for UK economic growth in 2027, The Guardian reported. The downgrade also covers living standards and public finances, reflecting the impact of the war in the Middle East on the British economy. The OBR said the conflict has delivered a multibillion‑pound hit and sparked a new cost‑of‑living crisis.
Chancellor John Healey presented his first budget amid the warning, offering a £100 payment to households to help them navigate “global economic storms”. Despite the cash injection and other measures, the OBR’s assessment remained negative, indicating that the fiscal and economic pressures are likely to persist.
The report highlights that the government's budget response is being tested by external shocks, and the revised outlook suggests tighter conditions for households and public services in the coming years.
Why it matters
The revised forecast signals weaker growth and tighter public finances, while the £100 payment shows the government’s attempt to cushion households from rising costs.
Key details
- Location
- United Kingdom · Europe
- Reported by
- The Guardian
- First reported
- Key names
- OBR, UK, John Healey, Healey
- Section
- Business
Sources
This is an independent summary. Read the full, original reporting from the publisher:
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