October 2024
5 things you should know about our forecast
Richard Hughes, Chair of the OBR, explains the top 5 takeaways from our report.
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Budget delivers large increases in spending, tax, and borrowing
The Budget increases spending by £70 billion annually, with two-thirds on current and one-third on capital spending. Half is funded through tax increases which raise £36 billion annually and push the tax take to a record 38 per cent of GDP. The rest is funded by £32 billion more borrowing annually which temporarily boosts GDP growth to 2 per cent in 2026, but leaves output unchanged in the medium term. New fiscal rules, to balance the current budget and get net financial liabilities falling relative to GDP in five years, are met by small margins of £10 and 16 billion respectively.
Economic and fiscal outlook press briefing: watch again or download the speaking notes and slides
Featured
October 2024
Review of the March 2024 DEL forecast
Read our Review and letter to the Chair of the Treasury Select Committee.
October 2024
Want a quick summary?
Read the executive summary of the October 2024 Economic and fiscal outlook
News
10 October 2024
Forecast evaluation report 2024
20 September 2024
Departmental spending keeps borrowing above forecast
29 August 2024
Public investment and potential output
21 August 2024
Year-to-date borrowing remains above forecast
18 July 2024
The Budget Responsibility Bill
24 May 2024
Third external review of the OBR
9 May 2024
Monthly profiles for 2024-25
27 February 2024
Welsh taxes outlook – February 2024
Articles
Income tax and the earnings distribution
Amy Nash | 11 July 2024
In this article, we set out how we put the PAYE income tax forecast together in our biannual Economic and fiscal outlooks; how new distributional analysis of earnings informs and improves our forecast; and what our latest forecast assumes about earnings growth across the distribution.
Trends in labour market inactivity for caring purposes
Katya Ring, Holly McCurry, Rosanna Colthorpe and Joshua Rawlings | 11 January 2024
In this article, we examine the reasons for the consistent downwards trend in inactivity for caring purposes coming to an end and what it might imply for our forecast for overall labour force participation.
Dynamic scoring of policy measures in OBR forecasts
Staff of the OBR | 9 November 2023
In this article, we set out how the OBR’s economic and fiscal forecasts capture the dynamic effects of policies on the economic behaviour of people and businesses.
The OBR ready reckoner
Balint Benke and João Sousa | 12 October 2023
Our new ready reckoner allows users to obtain quick, indicative estimates of how changes in the economy affect public finances.
300 years of UK public finance data
Luke Lanskey and Conor O’Loughnan | 20 July 2023
Our new historical public finances database contains 300 years of tax, spending, borrowing and debt data. This article tells the story of government borrowing and debt since 1700 and how the level and composition of tax and spending have evolved over this period.
Key publications
Medium-term forecasts
Five year forecasts for the UK economy and public finances and an assessment of whether the Government is likely to achieve its fiscal targets.
Fiscal risks and long-term projections
Report into the main fiscal risks facing the UK and sustainability of the public finances.
Forecast evaluation
Assessment of how our forecasts compare to outturn data and identifying lessons for future forecasts.
Welfare spending trends
An in-depth look at the drivers of welfare spending both inside and outside the Government’s welfare cap.
Monthly commentary
Our monthly commentary on the latest public finances data and how it compares to our most recent forecast.
Welsh taxes
We are commissioned by the Welsh Government to produce independent forecasts for devolved Welsh taxes.