Stories

Wed, 23 Sep 2026

Wed, 23 Sep 2026 UK warned over ballooning debt costs and slower growth ahead of Budget

Higher energy prices due to the conflict in the Middle East and climate change could hit growth.

* OECD downgrades growth forecast for UK to 1% next year from 1.1%
* IMF head Kristalina Georgieva warns global economic shocks are "pushing debt levels up like a staircase not to heaven"
* UK economy has proved more resilient than expected this year, with growth upgraded to 1.1%
* Inflation and higher fuel prices have driven up interest on government debt
* Prime Minister Andy Burnham says the UK is "over-exposed" to global shocks due to high level of borrowing
* Chancellor Healey faces a difficult balancing act between supporting households and sticking to Labour's manifesto commitments
* Higher fuel prices are expected to impact the economy, with Ryanair predicting ticket prices will be "materially higher"
* Global growth is also expected to slow next year, with countries including Australia, Canada, and the Euro-area affected.