Economy

UK growth forecast DOWNGRADED by OBR in assessment of Rachel Reeves's fiscal plans

March 3, 2026

The Office for Budget Responsibility (OBR) has downgraded the UK's economic growth forecast for 2026 from 1.4% to 1.1%, as revealed by Chancellor Rachel Reeves in the House of Commons. However, the OBR anticipates a rebound in GDP growth to 1.6% in 2027 and a decrease in public sector net borrowing from 4.3% this year to 3.6% next year.

UK growth forecast DOWNGRADED by OBR in assessment of Rachel Reeves's fiscal plans

Credit: Gbnews

Key Highlights

UK GDP growth forecast for 2026 downgraded from 1.4% to 1.1%.
GDP growth expected to rise to 1.6% in 2027.
Public sector net borrowing projected to decrease by nearly £18 billion.
Net borrowing forecast to fall from 4.3% this year to 3.6% next year.
Net borrowing expected to reach 1.8% by 2029-30.

Sources

UK growth forecast DOWNGRADED by OBR in assessment of Rachel Reeves's fiscal plans

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

UK growth forecast DOWNGRADED by OBR in assessment of Rachel Reeves's fiscal plans

Key Highlights

Sources

Related Stories

Pub landlord takes aim at Rachel Reeves for Spring Statement as 36 pubs close in just ONE day

Migration policy from Labour could hurt UK economic growth, shocking OBR report warns

Everything you need to know about the new IRS Schedule 1-A tax breaks