UK public borrowing is projected to fall to 4.2% of GDP this year, 3.4% next year and 2.9% in 2028–29, according to the latest revised forecasts from the Office for Budget Responsibility (OBR), presented by Chancellor John Healey in the budget. The projections are higher than the OBR’s March forecasts, which put borrowing at 3.6% of GDP this year, 2.9% in 2027–28 and 2.5% in 2028–29, reflecting heightened global uncertainty, with conflicts in the Middle East and Ukraine contributing to higher energy prices, inflation and borrowing costs worldwide. The OBR also estimates that the government’s headroom against its stability rule will stand at GBP 15 billion in 2029–30, rising to GBP 22 billion in 2030–31. Public debt is projected to reach 83.2% of GDP this year and 83.8% in both 2027–28 and 2028–29, before gradually declining to 81.7% by 2031–32.