US EditionUK growth forecast downgraded and unemployment will peak this year, chancellor reveals
The Office for Budget Responsibility forecasts unemployment peaking at 5.3% in 2026 and revises GDP growth down to 1.1%, while projecting recovery in subsequent years.
- On Tuesday, the Chancellor defended her plan despite the Office for Budget Responsibility cutting its growth forecast for 2026, insisting she has the 'right economic plan' for the UK.
- With its latest forecasts, the Office for Budget Responsibility said GDP will increase by 1.1% this year, down from the 1.4% in November.
- Reeves pointed to the forecasts and said, `unemployment is set to peak later this year and then fall, ending at 4.1%`, according to the OBR.
- To address youth joblessness, Reeves announced reforms and a 820 million youth guarantee as the 16‑ to 24‑year‑olds unemployment in London rose to 18.6%, with 88,000 unemployed.
- Reeves said in the coming weeks she will set out more reforms to undo the Tory legacy of neglect, acknowledging the economy is not yet working for everyone.
27 Articles
27 Articles
Benefits bill to cost extra £74bn - as Reeves pledges new back to work reforms
Spending on welfare, including pensions, is set to rise by £74bn over the next five years, the budget watchdog has confirmed. Official forecasts, published alongside Rachel Reeves’s Spring Statement, also show a higher than expected rise in the predicted spend on health and disability benefits by £1.3bn due to a rise in caseload. And the predictions show levels of unemployment will reach 5.3 per cent, up from a 4.9 per cent peak forecast at the …
Europe Intelligence Brief for Tuesday, March 3, 2026
What matters today 1 UK Spring Statement: OBR cuts 2026 growth forecast to 1.1% — Chancellor Reeves delivers Spring Forecast as Iran war casts shadow; OBR downgrades GDP from November’s 1.4% to 1.1% for 2026 but raises 2027–2028 to 1.6%; borrowing down nearly £18B vs Autumn; fiscal headroom rises to £23.6B; unemployment forecast peaks at […]
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- 41% of the sources lean Left, 41% of the sources are Center
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