Rishi Sunak delivered his spring statement against a backdrop of rising inflation and the war in Ukraine.
23 March 2022
Forecasts for economic growth have been slashed due to the uncertainty caused by the Ukraine war and rising inflation as Chancellor Rishi Sunak acknowledged the challenges facing the UK.
The Office for Budget Responsibility (OBR) downgraded growth in gross domestic product – a measure of the size of the economy – from the 6% forecast for this year at the time of the Budget in October to just 3.8%.
With inflation at a 30-year high, Mr Sunak promised a series of measures to help household finances – including a 5p per litre cut in fuel duty.
Mr Sunak said the OBR had warned “there is unusually high uncertainty around the outlook”.
“It is too early to know the full impact of the Ukraine war on the UK economy,” he told MPs.
“But their initial view, combined with high global inflation and continuing supply chain pressures, means the OBR now forecast growth this year of 3.8%.
“The OBR then expect the economy to grow by 1.8% in 2023, and 2.1%, 1.8% and 1.7% in the following three years.”
