News · 12 August 2026
UK growth could slow to 0.3% next year if Iran war continues
Warnings have been issued to new prime minister Andy Burnham, indicating that the UK economy might experience minimal growth in 2027 if the Strait of Hormuz remains disrupted until the close of 2026. Treasury projections, shared with Burnham and Chancellor John Healey, anticipate GDP expansion of only 0.3% next year, significantly below the 1.6% prediction from the Office for Budget Responsibility.
Reported by BBC · How we write briefs