UK Economy to Grow This Year, But Higher Energy Prices Loom in 2027 | BBC News

The UK economy is forecast to grow by more than previously expected this year, before higher energy prices and interest rates hit in 2027, according to the International Monetary Fund (IMF). The organization's latest report, closely watched by the government, predicts 1.3% growth in 2026, up from the 1% forecast in July, followed by a slowdown in 2027. UK chancellor John Healey said the government would look to "provide some breathing space" for households in the face of these challenges. The IMF's assessment highlights both the resilience of the UK economy and the risks ahead, particularly from external factors like energy costs. This report breaks down the IMF's findings, the government's response, and what it means for businesses and consumers. It offers a clear picture of the economic outlook and the policy choices that lie ahead.