OECD Cuts UK 2027 Growth Forecast to 1 Percent in Fresh Blow to Healey The OECD downgraded UK growth for 2027 to 1 percent from 1.1 percent, adding pressure on Chancellor John Healey as borrowing runs 8 billion pounds above forecast. The Organisation for Economic Cooperation and Development has downgraded Britain's economic outlook for 2027 to 1 per cent growth, down from a previous forecast of 1.1 per cent, in a fresh pre-Budget blow to Chancellor John Healey. The Paris-based organisation published the revised forecast as official borrowing figures showed the public finances under strain. The downgrade comes ahead of a Budget expected in the coming months. The OECD now expects the UK economy to grow by just 1 per cent in 2027, a cut from its earlier projection of 1.1 per cent. If official forecasts produced alongside the Budget downgrade the outlook to a similar level, it will add to the headache facing the Chancellor.Back in March, the Office for Budget Responsibility had projected 1.6 per cent growth for 2027. A sharp growth downgrade would make it even harder for Healey's sums to add up as he tries to rebuild Britain's battered public finances, boost defence spending and fund costly ambitions outlined by Prime Minister Andy Burnham.OECD Upgrades 2026 UK Growth OutlookThe OECD's UK growth outlook for this year has been upgraded slightly, from 0.9 per cent to 1.1 per cent. But that is still only half the pace of US growth at 2.2 per cent, falling short of Labour's manifesto ambition to achieve the strongest growth in the G7 group of major advanced economies.The report also provides little cheer for Burnham's hopes of easing the cost of living. The OECD's UK inflation forecast for this year has improved, cut from 3.7 per cent to 3.1 per cent. However, that remains higher than every other G7 nation except the US.The forecast for inflation next year has been increased from 2.4 per cent to 2.6 per cent, suggesting price pressures will persist into 2027.Borrowing Overshoot Adds to Healey PressureThe downgrade lands as Healey reels from worse than expected public finance figures. Borrowing for the first five months of the financial year reached 77 billion pounds, 8 billion pounds more than forecast by the OBR in March.The figures come against a gloomy economic backdrop after Donald Trump's Iran war sent oil and gas prices soaring, with little sign that any lasting resolution is imminent.In Britain, growth has been more solid than expected in the first half of the year. The OECD said consumer confidence had remained resilient across advanced economies despite the war disruption.But there have been signs of pain, as credit card spending data in the UK, US and Germany shows households putting a higher proportion of spending towards fuel, amid very rapid growth in petrol and diesel prices since the start of the conflict.Global Outlook Hinges on Middle East ResolutionThe OECD predicts that newly announced government support measures will keep Britain's consumer economy ticking over this year and next. Globally, the report notes that economic prospects remain heavily dependent on whether a durable resolution to the Middle East conflict is achieved.Chief Secretary to the Treasury Emma Reynolds said that despite unprecedented pressures and conflict in both the Middle East and in Europe, the UK economy is showing strong resilience. She added that the government will face these challenges together and is already giving families space to breathe, citing the fastest growth in the G7 in the first half of the year and the start of long-term changes to create good jobs and growth in every postcode.Tory Shadow Chancellor Andrew Griffith said the OECD has downgraded the UK's growth for 2027 to just a third of the average growth rate of the G20. He argued that Britain can and should aspire to do much better. He added that the OECD urges countries to control spending and improve public sector efficiency, but instead the government is trying to find new ways to tax people while having to pay interest rates on its borrowing which are the highest in the G7.