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

- URL: https://talkfuse.com/story/obr-slashes-uk-growth-forecast-for-2027-despite-healeys-budget-measures/
- Published: 2026-10-28T14:19:32+00:00
- Updated: 2026-10-28T15:50:14+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/oct/28/obr-slashes-uk-growth-forecast-for-2027-despite-healey-budget-measures
- Topics: Art, Business, Culture, Economy, Markets, Middle East, Software, Technology, UK, World

## Key points

- The OBR cut its 2027 UK growth forecast to 1%.
- Inflation is forecast at 3.5% this year.
- Healey announced £100 payments for 20 million households.

## Summary

The Office for Budget Responsibility has cut its forecast for UK economic growth in 2027 from 1.5% to 1%, citing the economic fallout from war in the Middle East. The downgrade, alongside higher inflation and weaker income prospects, suggests households and public finances will remain under pressure despite measures in John Healey’s first budget.

The OBR raised its forecast for growth this year from 1.1% to 1.2%, but expects inflation to reach 3.5%, compared with 2% in its March forecast, and warned it could approach 4%. Healey announced £100 payments for 20 million households, costing £2.6bn, and plans to abolish gas standing charges; he also left £15bn of headroom against the main fiscal rule, down from £23.6bn in the spring. The OBR said real disposable income per person has barely grown since just before Covid and may be only about 2% above pre-pandemic levels by the early 2030s.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.