HSBC slashed its UK growth forecast, warning the economic outlook had ‘deteriorated’ as a pre-Budget row erupted over a tax raid on banks.
In a blow to John Healey, the bank cut its GDP growth estimates for 2027 from 1.4 per cent to 1.1 per cent, as higher inflation and interest rates dampen consumer spending and the housing market.
‘In the UK, the outlook has deteriorated and GDP growth forecasts are lower,’ the bank said.
It came as the Chancellor was urged to press ahead with a windfall tax on banks after the bank posted another surge in quarterly profits.
The FTSE 100 lender reported pre-tax
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