Reeves Faces UK Growth Downgrade Before War Hits Economy (1)

The UK budget watchdog warned of weaker 2026 growth even before factoring in any hit from war breaking out in the Middle East.

Delivering a fresh set of Office for Budget Responsibility forecasts, Chancellor of the Exchequer Rachel Reeves said projected growth in 2026 was now 1.1%, down from 1.4% in November. She also announced lower expectations for government borrowing and inflation, warning that her economic plan “is even more important in a world that in the last few days has become yet more uncertain.”

“With unfolding conflict in Iran and the Middle East, it is ...