OBR halves UK growth forecast and warns inflation will exceed 2% target until 2025

Despite 27bn windfall for the autumn statement, government forecaster warns of generally more difficult outlook until 2028

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The government's official forecaster has slashed its predictions for economic growth over the next two years, and warned that inflation could take until 2025 to come back to the official 2% target.

In an updated financial health check to accompany the autumn statement, the Office for Budget Responsibility (OBR) said a more resilient economy this year had handed the chancellor a 27bn budget windfall, but it warned of a more difficult outlook up to 2028 than previously forecast at the time of the budget in March.