UK Chancellor Healey Announces 2027 Economic Slowdown

UK Chancellor John Healey shared the Office for Budget Responsibility's (OBR) latest forecasts during his budget presentation in parliament. Healey reported that the UK economy is expected to grow by 1 percent next year, driven by the impact of global economic storms and conflicts in the Middle East.

UK Chancellor John Healey announced during his budget presentation on Wednesday that, according to OBR forecasts, the growth rate will slow to 1 percent in 2027. While it was recalled that the previous growth forecast was 1.6 percent, the growth expectation for 2026 was raised to 1.2 percent. According to OBR data, the economy is projected to grow by 1.6 percent in 2028 and 1.8 percent in 2029. Healey pointed out that global factors such as the US-Iran war and conflicts in Ukraine have increased costs for British families and businesses.

Under the announced budget, the surcharge on bank profits will be increased from 3 percent to 6 percent for a period of 15 months, and it was confirmed that the basic minimum wage rate will be increased by 3.9 percent. It was stated that the VAT exemption on electricity bills will be extended, new support programs will be launched for businesses, and the tax on slot machines will be raised to 25 percent to fund small business tax cuts.