The Treasury has published its monthly comparison of independent economic forecasts, and the numbers massively undercut the OBR’s forecasts. When is the OBR ever right…
The June edition, compiled by the Treasury’s own Macroeconomic Conditions and Risk Team and posted on gov.uk, collects the latest predictions from 20 City and independent forecasters. They expect CPI inflation to hit 3.7% by the end of 2026. The OBR’s March forecast had inflation back at its 2% target by then, a precise 1.9%. Today’s predicted number is nearly double that…
The growth picture is obviously no better. Forecasters put 2026 GDP growth at 0.9%, below the OBR’s 1.1%, and have trimmed their 2027 call to 1.0%, against the watchdog’s 1.6%. They also see the Bank Rate stuck at 3.8% by year-end, above the 3.3% the OBR’s March forecast assumed. In other words, don’t expect any rate cuts. All of this is still technically a headache for Rachel Reeves, although it may soon be someone else’s problem once Burnham returns…
Burnham confirms he spoke to Trump last night about drilling in the North Sea:
“I indicated in the phone call that we had a week last Monday that I would take a pragmatic approach when it comes to the North Sea, and that is my intention as we go forward from here. There is a resource there. When people are struggling, we can’t ignore that. Hence, me indicating that to the president…”