Budget 2026: OBR warns Healey faces £11bn shortfall as growth forecast slashed to 1%
Fiscal watchdog sees inflation, unemployment rising and a decade of squeezed household incomes
The Office for Budget Responsibility has told the Chancellor, John Healey, that he will need to find an extra £11 billion between 2029 and 2032 to avoid real-terms cuts to day-to-day spending, as it slashed next year's growth forecast to 1 per cent and predicted higher inflation and unemployment.