The UK economy is now forecast to grow by 1% in 2027, according to the latest projections from the Office for Budget Responsibility (OBR), set out by Chancellor John Healey in his first Budget statement to Parliament. This represents a downgrade from the OBR’s previous estimate of 1.6%, published in March before the outbreak of the war in Iran.
Growth is projected to pick up to 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031. By comparison, the OBR’s earlier forecasts had pointed to growth of 1.6% in 2028 and 1.5% in both 2029 and 2030. The outlook for 2026 has been revised slightly higher, with expected growth raised to 1.2% from 1.1% previously.
