×

UK economic growth downgraded to 1% in 2027, Healey says in first budget

By Thomson Reuters Oct 28, 2026 | 7:49 AM

LONDON, Oct 28 (Reuters) – Britain’s economy is forecast to grow by 1% next ​year, finance minister John ‌Healey said on Wednesday, citing the latest projections from the Office for Budget Responsibility.

The new ‌figure ​compared with a ⁠growth forecast for ⁠2027 of 1.6% in the OBR’s previous outlook published in March and prepared ​before the start of the Iran war.

The OBR ⁠expects economic output ⁠to expand by 1.6% ​in 2028, 1.8% in 2029, ​1.7% in 2030 and 1.6% ‌in 2031, Healey said as he gave his first budget statement speech to ⁠parliament.

Those projections compared with the budget watchdog’s previous expectations for growth ⁠of ‌1.6% in 2028 and ⁠1.5% in 2029 ​and ‌in 2030.

Growth in 2026 ​was upgraded ⁠slightly to 1.2%, up from the previous forecast of 1.1%.

(Reporting by David Milliken and Andy Bruce; writing by ​Suban Abdulla;)