‘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

British households face a “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.

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

6% next year. 6% increase in disposable incomes that the OBR was forecasting in March – was driven mainly by higher energy costs.