UK Office for Budget Responsibility: Treasury reforms will help boost GDP growth

The Office for Budget Responsibility (OBR), which previously halved its forecast for UK GDP growth this year, has raised the same estimate for 2029. According to the institution, the economy will grow by 0.2% more in that period than expected in the October budget.

Chancellor of the Exchequer Rachel Reeves' reforms include the construction of an additional 170,000 new homes during the current parliament. Reeves also added about 14 billion pounds ($18.06 billion) to the budget. To do this, she cut spending on social programs and also announced an increase in tax revenues, mainly due to the fight against tax evasion. This information is provided by Bloomberg.

Nevertheless, some members of the Labor Party have expressed concern about the reduction of social benefits and spending on public services. In response to the criticism, Reeves assured that living standards of households will increase by an average of 500 pounds ($646.18) per year. These measures, she said, should lead to an improvement in the financial well-being of citizens and have a positive impact on economic stability.