UK growth forecast cut as Middle East conflict weighs on economy
The Office for Budget Responsibility downgrades growth and living standards outlook, citing global economic pressures.
At a glance
- OBR cuts UK growth forecast for 2027
- Middle East conflict cited as drag on economy
- Living standards outlook also downgraded
- Chancellor announces £100 household payment
Britain's economy has sustained a multibillion-pound impact from the Middle East conflict, which is dampening growth and triggering a fresh cost of living crisis, according to the government's independent forecaster. The Office for Budget Responsibility issued a sharp downgrade for growth, living standards and public finances as Chancellor John Healey announced his first budget.
The downgrade came despite budget measures introduced by the chancellor, including a £100 payment to households to help navigate what officials described as global economic storms.
Why it matters
The downgrade signals economic headwinds facing Britain despite government intervention, with geopolitical conflict now directly affecting domestic growth and household finances.
Original reporting
- The Guardian — WorldOBR slashes UK growth forecast for 2027 despite Healey’s budget measures
- The Guardian — BusinessOBR slashes UK growth forecast for 2027 despite Healey’s budget measures
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
