UK economy set to grow faster than expected this year

The UK’s economy is expected to grow slightly faster than expected this year and next year, according to the government’s official forecaster.

Presenting the Budget, Chancellor Rachel Reeves said the Office for Budget Responsibility (OBR) predicted the economy would grow by 1.1% this year, up from its previous prediction of 0.8%.

The OBR also forecast higher growth – of 2% – in 2025, up from its March forecast of 1.9%.

But in 2026 and towards the end of the parliament, growth would be weaker than was forecast in March.