Chancellor Rachel Reeves told taxes will have to be hiked further to help stabilise public finances

TAXES will have to be hiked further to help stabilise the public finances, Rachel Reeves has been told.

A health check on the UK economy highlighted the need to “mobilise additional revenue” to withstand shocks, the OECD said.

The influential report came as Bank of England boss Andrew Bailey said there could be as many as four interest rate cuts next year.

After assuring business leaders that she would not need to increase borrowing or taxes any further, the Chancellor received a serious warning.

The growth forecast for the upcoming year has been increased from 1.2% to 1.7%. However, the OECD is concerned that the Budget adjustments may hinder business investment in the future.

The boost, down to higher government spending, will make the UK the best-performing G7 economy next year beating Japan, France, Germany and Italy.

Rachel Reeves, the Chancellor, emphasized the importance of growth, stating that the OECD’s upgrade positions the UK to be the fastest expanding European economy in the G7 over the next three years.

“That is only the start. Growth only matters if it’s matched by more money in people’s pockets.”

The influential report also said interest rates which currently stand at 4.75 per cent will now expect to fall by less than expected.

The government’s spending plans will keep inflation at 2.7 per cent next year, the OECD say. It will then see a slower interest rate fall, expected to be 3.5 per cent by the first part of 2026.

But Bank of England chief Andrew Bailey last night was asked if there would be about four interest rate cuts next year, saying: “Yup.”

He told the FT: “We’ve been looking at a number of potential paths ahead — and some of them are better than others.”

Watch Keir refuse to rule out MORE brutal tax hikes despite Reeves’ promise that Budget misery was the end of it

He also said the rise in national insurance contributions is the “biggest issue” in how firms balance prices, wages and the employment levels.

Figures also show that 45 companies have de-listed so far this year – the most since 2010 – from the London Stock Exchange.

Meanwhile, Sir Keir Starmer refused to repeat his previous pledge that the UK will have the fastest growth in the G7 during a heated clash with Tory leader Kemi Badenoch.

Downing Street later clarified that the government remains “committed” to that mission.

The global economy is predicted to grow by 3.2 per cent this year and 3.3 per cent next year which is higher than predicted.

Chancellor Rachel Reeves has been told taxes will have to be hiked further to help stabilise the public finances
Chancellor Rachel Reeves has been told taxes will have to be hiked further to help stabilise the public finances
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Gunman deceives principal before shooting two children at elementary school

A SICK gunman shot two kindergarteners in a targeted attack because of…

Uncovered: The hidden message on bullets used to murder UnitedHealthcare CEO Brian Thompson by an assassin as his spouse discloses their family had received unknown ‘threats’

The words scrawled on the bullets used to kill UnitedHealthcare CEO Brian…

The only remaining British captive in Gaza – my daughter has been detained for 425 days. I worry she might not survive due to lack of food.

A WOMAN is believed to be one of the few captives still…

Homes of Deceased CEO Brian Thompson and His Wife Targeted by Fake Bomb Threats

On Wednesday, two houses in Minnesota belonging to UnitedHealthcare CEO Brian Thompson’s…

New development in the disappearance of Hannah Kobayashi: Family worries she may be involved in green card scam marriage after CCTV footage surfaces

Hannah Kobayashi’s loved ones are considering the chance that she could have…

Police are asking for tips to help find a missing woman in South Carolina.

A woman has been missing in South Carolina since mid-November, and the…

James Dyson criticizes Labour’s Budget as damaging to the UK economy

SIR James Dyson has attacked Labour’s Budget as an “act of self-harm”…

Stunning island with submarine, 3 villas, and golf course for sale at £62m just in time for Christmas

THIS private island with its own golf course has just gone up…

Prince William Wears an Apron to Serve Christmas Dinner at The Passage, a Homelessness Charity Visited First with Princess Diana

Prince William made a secret visit to serve up Christmas dinner at…

Attack with firebomb injures two at crowded Australian synagogue

In an early morning incident at a synagogue in Melbourne’s Jewish community,…

Unnerving Inscription Discovered on Bullets Linked to UnitedHealthcare CEO Brian Thompson’s Assassination

THE assassin who killed UnitedHealthcare CEO Brian Thompson left a message on…

Anders Breivik, the Neo-Nazi murderer who asked for early release 13 years post island massacre where 77 people died, will not be set free – court acknowledged ‘positive’ changes.

Anders Behring Breivik, a neo-Nazi killer who sought parole just 13 years…