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.

By BriefTea Editorial · 12 August 2026 at 16:19

Reported by BBC · How we write briefs

Get the app

Understand this story

What is GDP? How could my savings be affected? Why would prices rise?

More briefs

GeneralSouthern England declared in severe drought across six areas TechnologyTesla's new Roadster: 60 mph in under a second, thanks to SpaceX WorldTrump administration places new sanctions on 26 targets connected to Iran PoliticsChancellor John Healey plans to raise taxes on banks in the October budget BusinessLondon's top shares reach a seven-week high as investors buy safer British businesses GeneralHarry and Meghan visit Nottingham in their first joint public outing since returning Browse all stories →