In its latest economic outlook, the influential organisation said UK growth will slow from 1.4% this year to 1.2% next year, before edging up to 1.3% in 2027, with “substantial” downside risks of the fiscal tightening plans. The OBR also last week downgraded its growth forecasts for each of the next four years in a damning verdict on the impact of budget measures on the wider economy. In response, Ms Reeves said: “Last week, my Budget cut waiting lists, cut borrowing and debt, and cut the cost of living. “Less than a week later, the OECD has upgraded our growth and cut its forecast for inflation next year. “The global economy has proved more resilient than expected this year, but underlying fragilities remain,” the OECD said.

Source: The Times December 02, 2025 16:05 UTC