The Office for Budget Responsibility’s economic and fiscal outlook, updated on Friday following Wednesday’s UK Budget, forecasts a difficult economic environment.

The OBR has reduced its 2027 growth forecast by half a percentage point compared with March. It expects higher energy prices and interest rates to constrain economic activity and household spending power.

Why it matters for Wales: Higher inflation reduces the purchasing power of Welsh Government budgets and increases costs for councils, NHS organisations, businesses and households.

These are UK-wide forecasts, not Wales-specific economic projections. The underlying report was issued with the Budget on 28 October and updated on 30 October; it is included here as an important Budget follow-up.