‘A pretty grim picture’: outlook for UK living standards slashed despite Healey’s budget

OBR cautions about Middle East war dragging down growth and triggering a fresh cost of living crisis

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British households face a “pretty grim picture” for living standards as the war in the Middle East drags down growth and triggers a fresh cost of living crisis, the government’s independent forecaster has said.

In a report as John Healey announced his first budget, the Office for Budget Responsibility (OBR) issued a sharp downgrade for growth in 2027, household disposable incomes and the public finances despite the measures taken by the chancellor.