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

Summary

The Office for Budget Responsibility, the government’s independent forecaster, has sharply downgraded its outlook for UK growth in 2027, household disposable incomes and the public finances, despite measures taken by Chancellor John Healey in his first budget. Its report says British households face a “pretty grim picture” for living standards as the war in the Middle East drags down growth and triggers a fresh cost of living crisis. The Financial Times reports that the watchdog sees living standards flatlining this decade as energy prices and taxes rise. Healey announced a £100 payment to households to help them navigate “global economic storms”.

Timeline

1. The Guardian

   28 Oct 2026, 15:40 UTCSource ↗

   The Guardian reports that the OBR has sharply cut its UK growth forecast for 2027 and downgraded household incomes and the public finances, citing the Middle East war, despite Healey’s first budget measures.

2. Financial Times

   28 Oct 2026, 18:26 UTCSource ↗

   The Financial Times reports that the OBR sees a “grim” outlook for real household disposable income, with UK living standards flatlining this decade as energy prices and taxes rise.