- New forecasts from the Organisation for Economic Co-operation and Development (OECD) indicate that UK economic growth will slow to 1 per cent next year, impacted by rising global energy prices and the fallout from Donald Trump's war in the Middle East.
- Despite the anticipated dip next year, the OECD upgraded its economic growth forecast for the UK in the current year to 1.1 per cent, up from a June estimate of 0.9 per cent due to strong second-quarter domestic demand.
- UK consumer price inflation is on track to average 3.1 per cent this year—lower than the 3.6 per cent previously estimated—though it is now projected to fall back to target levels more slowly, reaching 2.6 per cent next year.
- The downgraded growth outlook for next year poses a challenge for Chancellor John Healey ahead of next month's crucial Budget, as the government attempts to find funding for Andy Burnham's plans and national defence priorities.
- Treasury minister Emma Reynolds defended the nation's economic resilience, pointing out that the UK experienced the fastest growth in the G7 during the first half of the year and highlighting cost-of-living measures such as removing VAT from energy bills.
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