The Iran war could “halt growth” in the UK economy as the success of Andy Burnham and John Healey’s economic management largely hinges on President Trump’s decision-making, a City firm has warned. Big Four consultancy EY has said that the UK economy could perform better than first expected this year as its growth forecast was revised up to 0.9 per cent. A separate forecast for a scenario where disruption continues into the middle of 2027 showed growth would slow to 0.5 per cent this year and contract by 0.2 per cent next year. On Sunday morning, President Trump hinted that a new peace deal with Iran was close to agreement, raising hopes that the world economy might avoid the worst economic outcomes of war. UK economy to face ‘test’ this yearEY’s forecasts cast a shadow over Andy Burnham’s optimism for the UK economy and drive to ease the cost of living for businesses and households.