British government estimates growth of 1.2% in 2026 and 1% in 2027

The UK economy is projected to grow by 1.2% in 2026 and 1% in 2027, according to Finance Minister John Healey's budget announcement. Growth is expected to accelerate to 1.6% in 2028 and 1.8% in 2029, before slightly slowing to 1.7% in 2030 and 1.6% in 2031. Public debt is anticipated to decrease to 4.2% of GDP this year and further to 1.8% by 2030/31. Public debt is expected to reach 83.2% of GDP in 2026 and 83.8% in 2027, declining to 81.7% by 2031/32. The UK's public debt has surpassed three trillion pounds for the first time, requiring 8% of public spending for interest payments. Healey noted a fiscal margin of £15 billion in 2029/30, increasing to £22 billion in 2030/31.