The Chancellor, Jeremy Hunt, outlined measures that he hopes will stabilise the UK economy and help boost growth in his Autumn Statement speech.
However, the forecast commissioned by the government and published by the Office for Budget Responsibility (OBR) revealed that despite over £100 billion of additional fiscal support helping to ‘cushion the blow of higher energy prices’, the UK economy is still set to fall into recession.
The Office for Budget Responsibility (OBR) also warned that living standards will reduce by 7% over the next two years. Living standards are not set to recover to 2021 levels until 2027/28, the OBR stated.
The UK economy is set to grow by 4.2% this year, the Office for Budget Responsibility (OBR) revealed. It will then shrink by 1.4% next year and rise by 1.3% in 2024; 2.6% in 2025; and 2.7% in 2026.
Commenting on the Office for Budget Responsibility’s (OBR’s) forecast, the Chancellor said: ‘The OBR confirm that because of our plans, the recession is shallower, and inflation is reduced. Unemployment is also lower, with about 70,000 jobs protected as a result of our decisions.’