OBR confirms UK recession and weakest public finances 'for many decades'

‘Business investment forecast to fall’

The Office for Budget Responsibility has revealed the UK has tipped into a recession, which is expected to last “just over a year” at the current rate, while the wounds of compounded economic pressures will be felt for many years to come.

In its fresh forecast, published alongside the government's Autumn Statement today (17 November), the OBR unveiled the full impact of the government's various fiscal plans and the ongoing global supply chain and energy shortages. The independent body said the UK had been pushed into a recession in Q3 2022, with the squeeze on real incomes, rise in interest rates and the fall in house prices all weighing on consumption. Combined with six months of the aforementioned macro issues and Russia's war in Ukraine, the country faces a sour economic outlook. In his address to parliament, Chance...