The government focuses on labour market reforms and on encouraging business investment to boost growth, but household finances and housing prices are projected to fall.
  • The Office for Budget Responsibility (OBR) has concluded that the UK’s economic outlook has improved since November. It is no longer forecasting a 2023 recession. 

  • Major measures aiming to lower childcare costs for parents of young children and encouraging business investment have been judged positively by the OBR. 

  • A more positive short-term outlook has not alleviated financial strain for households. Housing prices are now expected to drop by 10% from Q4 2022 and real disposable incomes are not forecast to return to pre-pandemic levels until 2027-2028. 

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