IMF upgrades UK growth outlook as Burnham’s maiden budget flags 2027 energy price rise

The International Monetary Fund has lifted its projection for UK economic growth, a modest upgrade that arrives as Prime Minister Andy Burnham finalises his first budget. The budget, meanwhile, already flags a rise in household energy prices and a modest increase in rates slated for 2027.

In the City, traders are giving the IMF’s upbeat tone a polite nod while keeping a wary eye on the looming energy‑cost curve. The juxtaposition of brighter growth forecasts and a future price shock has become fodder for the usual banter among analysts.

Treasury officials are busy drafting the next round of communications, aiming to reassure the public that the economy is on an upward trajectory while also warning households to start budgeting for higher energy bills in 2027.

The real test, observers note, will be whether the economy can absorb the projected energy‑price hike without needing a second‑hand rescue for the City.