Question to the HM Treasury:

To ask His Majesty's Government, with regard to the report by the Office for Budget Responsibility, Economic and fiscal outlook, published on 26 November, what assessment they have made of the risks of elevated global equity valuations driven in part by AI technology stocks to the economy.

The government does not comment on individual market moves.

The Office for Budget Responsibility (OBR) is the government's official forecaster responsible for assessing the UK economic and fiscal outlook, including the macroeconomic impacts of policy and the risks to the UK outlook. In its November 2025 Economic and Fiscal Outlook, the OBR assessed the potential impacts of a shock to global equity prices. The OBR presented two scenarios with a potential peak impact on UK real GDP of 0.5%-0.6% relative to its central forecast.

HM Treasury maintains a comprehensive framework for assessing and managing risks to the economic and fiscal outlook. This includes systematic monitoring through internal risk processes and risk governance forums, and collaboration with other government departments. HM Treasury also works closely with the UK financial regulators to assess risks relating to financial markets.