UK economy growth forecasts lowered from next year

The UK economy is expected to grow at a slower rate than previously expected from next year, the government's official forecaster has said.

The Office for Budget Responsibility (OBR), which maps out how the economy is set to perform based on the government's tax and spending policies, increased its growth expectations for this year, but downgraded its forecast for the following four.

The forecast was published in error ahead of the Chancellor Rachel Reeves delivering her Budget on Wednesday.

The OBR's report said that income tax thresholds would be frozen until the end of the 2030-31 financial year.

The government has made growing the economy its number one pledge an effort to boost living standards across the UK.

In its forecast published online, the OBR predicts the economy will grow by 1.5% this year, higher than its previous forecast of 1%.

However, it expects growth of 1.4% in 2026 and 1.5% in the following four years - all of which are downgrades from its forecast made in March.