Stories

Tue, 03 Mar 2026

Tue, 03 Mar 2026 Reeves says her plan is working as growth forecast cut for this year

The forecasts were made before the conflict in the Middle East broke out which could have a "very significant" impact, the OBR said.

* Chancellor Rachel Reeves claims her economic plan is working, despite lowered growth estimate for this year
* Office for Budget Responsibility (OBR) cuts expected growth rate for 2026 to 1.1% from 1.4%
* OBR upgrades estimates for later years and expects inflation to be lower than previously thought
* Conflict in the Middle East could have a significant impact on global and UK economies, causing oil and gas prices to rise
* Reeves insists government has "the right economic plan" for the country, despite criticism from opposition parties
* OBR forecasts show: + Inflation expected to fall to 2.3% this year, down from 2.5% + Expected to reach Bank of England's target rate of 2% by end of 2026
* Business leaders express concern over lack of support for small businesses and potential impact of conflict on economy
* Chancellor announces she will set out "three major choices" in a speech later this month to determine the course of the economy.