In the UK, the 0.2 percent contraction expectation for this year was revised to 0.6 percent growth, while forecasts for 2024 and 2025 were lowered.
In a statement from the Office for Budget Responsibility (OBR), it was stated that the country’s economy will grow by 0.6 percent this year. The previous forecast was 0.2 percent contraction.
In the statement, the economic growth forecast for 2024 was reduced from 1.8 percent in March to 0.7 percent. The economy is projected to grow by 1.4 percent in 2025. The previous forecast was 2.5 percent for 2025.
In addition, inflation, which was 4.6 percent on an annual basis in October, was estimated to decline to 2.8 percent at the end of 2024. It was stated that the Bank of England’s 2 percent inflation target will not be reached before 2025.
UK Finance Minister Jeremy Hunt, in his speech on the fall budget arrangements in the parliament, noted that it was decided to increase pensions in the country by 8.5 percent from next year and social assistance and unemployment benefits by 6.7 percent.
Hunt also stated that the basic insurance tax of 27 million employees in the country was decided to be reduced from 12 percent to 10 percent.
Finance Minister Hunt announced a permanent cut in corporate tax for businesses.
Rachel Reeves, the Shadow Finance Minister of the opposition Labor Party, stated that economic growth in the country has reached a dead end due to the Conservative Party policies that have been in power for 13 years.