<p>Outlook for living standards also downgraded as part of impact of Middle East conflict on economy</p><ul><li><p><a href="https://www.theguardian.com/uk-news/2026/oct/28/budget-2026-john-healey-offers-100-payment-to-households-to-help-navigate-global-economic-storms">Healey offers £100 payment to households to help navigate ‘global economic storms’</a></p></li><li><p><a href="https://www.theguardian.com/uk-news/2026/oct/28/budget-2026-key-points-john-healey">Budget 2026: key points at a glance</a></p></li><li><p><a href="https://www.theguardian.com/uk-news/live/2026/oct/28/budget-2026-latest-updates-john-healey-andy-burnham-labour-uk-politics">Budget 2026 live – latest updates</a></p></li></ul><p>Britain’s economy has taken a multibillion-pound hit as the war in the Middle East drags down growth and triggers a fresh cost of living crisis, according to the government’s independent forecaster.</p><p>In a report as John Healey announced his first budget, the Office for Budget Responsibility (OBR) issued a sharp downgrade for growth, living standards and the public finances despite the <a href="https://www.theguardian.com/uk-news/2026/oct/28/budget-2026-key-points-john-healey">measures taken by the chancellor</a>.</p> <a href="https://www.theguardian.com/business/2026/oct/28/obr-slashes-uk-growth-forecast-for-2027-despite-healey-budget-measures">Continue reading...</a>