UK Economy Faces Grim Outlook as Energy Shock Slashes Growth Forecasts
The UK economy faces a severe downturn as the Office for Budget Responsibility (OBR) cuts 2027 growth forecasts to 1% due to soaring energy prices from the Middle East conflict. Inflation is expected to peak at 3.8% in 2027, while real household disposable income is projected to fall by 0.6% next year. Chancellor John Healey’s budget offers limited relief, including a £100 council tax rebate and the abolition of gas standing charges, but critics argue these measures are insufficient against the rising cost of living and stagnant long-term growth.