General · 2 June 2026
OBR: Energy shocks could add £23.1bn to UK borrowing
Higher government debt costs and pressure on public spending could grow if energy prices remain elevated. The Office for Budget Responsibility said lessons from the Ukraine-linked energy shock would be used in this year’s Budget after reviewing its forecasting methods. Its earlier assessment estimated borrowing would rise by an average of £23.1bn annually under a major supply disruption, while oil prices briefly reached $114 a barrel.
Reported by City AM · How we write briefs