The UK’s economy will develop slightly faster than expected this year and next year, according to the government’s official forecaster.

Presenting the distribution, Chancellor Rachel Reeves said the Office for distribution Responsibility (OBR) predicted the economy would develop by 1.1% this year, up from its previous prediction of 0.8%.

The OBR also projection higher growth – of 2% – in 2025, up from its March projection of 1.9%.

However, in 2026 and towards the complete of the parliament, growth is predicted to be slightly weaker than was projection in March.

The chancellor said the distribution would mark “an complete to short-termism” and that the OBR would from now on also provide a 10-year growth projection when it publishes its analysis of the distribution.

“Every distribution I deliver will be concentrated on our mission to develop the economy,” Reeves said.

However, the OBR is forecasting lower than expected growth for the complete of the parliament. Growth in 2027 and 2028 would be 1.5%, down from the 1.8% and 1.7% projection in March.

The OBR expects worth rise to remain slightly above the lender of England’s 2% target until 2029.

It is challenging it to make precise predictions several years ahead, and economic forecasts are regularly updated.

The combination of stronger growth early in the parliament, followed by weaker growth in later years, suggests the cumulative impact, or the size of the economy by the complete of the parliament, will not be very different overall.

In total the economy is set to develop by nearly 8.2% in total by 2028. In March it was projection to develop by nearly 8.5%.

However, Paul Johnson, head of the independent economics ponder tank the Institute for financial Studies, described the growth projection as “pretty disappointing stuff”.

How much the economy grows is a key factor limiting what the government will be able to do over the course of the parliament.

If growth is powerful, responsibility revenues are likely to boost, meaning there is more to spend on community services, or on reducing taxes, and to pay the gain on government borrowing. If growth is frail, the government is likely to have to cut back on what it would like to do.

Reeves said while there would be no profitability to austerity, there would “still be challenging decisions to arrive”.

But she said the OBR believed Labour’s plans would have a positive impact on the “supply capacity of the economy” or its ability to develop.

The government bases its policy plans on the projection of the OBR. However, economic forecasting is not precise.

Predictions can be affected by a huge range of factors including geopolitical uncertainty, global vigor prices, and events in the globe’s other large economies. tiny changes in any of these factors can have an impact on the path of UK growth.

Reeves said she would “catalyse £70bn of enterprise distribution” in the UK through a recent National affluence pool, transform planning rules to “get Britain building”.

She said she would work with devolved governments in Wales, Scotland and Northern Ireland, as well as regional mayors, to boost local and regional growth plans.