Britain's economic growth to be weakest in a century except for pandemic and WWII

"Britain's economic growth this decade is set to be the weakest in a century apart from the depths of the Covid pandemic and the Second World War despite Sir Keir Starmer and Rachel Reeves putting it at the centre of their mission for government, a leading think tank has warned."

"The criticism comes after the Office for Budget Responsibility (OBR) indicated gross domestic product (GDP) will increase by just 1.1 per cent in 2026, down from the 1.4 per cent it forecast in November after the chancellor delivered her spring statement on Tuesday."

"The Institute for Fiscal Studies (IFS) has questioned Rachel Reeves' plan to bring down high levels of borrowing and warned that tax hikes or spending cuts will be needed to boost defence spending."

The Resolution Foundation warns that Britain faces its weakest economic growth this decade in a century, excluding the Covid pandemic and Second World War. This forecast contradicts the government's stated mission to prioritize economic growth. The Office for Budget Responsibility projects GDP growth of just 1.1 percent in 2026, down from 1.4 percent previously forecast. Growth projections for 2027 and 2028 were upgraded marginally by 0.1 percent to 1.6 percent. The Institute for Fiscal Studies questions the government's borrowing reduction plans and warns that tax increases or spending cuts will be necessary to fund defense spending increases.

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