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

Luigi Mangione, CEO linked to violence, praised Unabomber and advocated for violence before alleged act against Brian Thompson.

THE suspected assassin of the UnitedHealthcare CEO praised the deranged Unabomber months…

The disturbing psychology behind Dominique Pelicot’s actions in allegedly arranging for 72 men to assault his wife Gisele while she was asleep.

IT is the sickening mass trial that has shocked the world –…

Image: Mother, aged 41, fatally attacked by ‘her pet dog’ at apartment in Aberdeen while her grieving relatives honor her

Police have released the name of a mother who was mauled to…

“Renowned Doctor creates revolutionary ‘scientific sandwich’ proven to cure hangovers instantly”

Tis the season many of us start overindulging in a few too…

Accused Killer’s Parents Given Custody of Microsoft Execs Twin Children by Court

The twin children of Microsoft executive Jared Bridegan, who was tragically killed,…

Elderly woman missing near quicksand found deceased in remote estuary.

A body has been found in the search for a missing 74-year-old…

The price of Christmas dinner increases to £32.57 for a family of four due to rising supermarket prices leading to a 16% hike in some traditional vegetable costs compared to last year.

A recent study has shown that the cost of a typical Christmas…

BBC executives instructed to tackle issues of secrecy after allegations involving celebrities

BBC bosses were last night ordered to address the “cultures of silence”…

Former Deputy convicted for the murder of a fellow Deputy’s spouse

A former Oklahoma deputy sheriff was sentenced to life without parole in…

Icy fog and snow at -6C before Christmas after Storm Darragh wreaks havoc in Britain

BRITS brace themselves for more Baltic weather as a -6C freezing fog…

Rebels overthrow brutal dictator Bashar al-Assad, leading to the return of thousands of Syrian refugees

THOUSANDS of Syrian refugees returned home yesterday hoping for a brighter future…

Revealing Assad’s brutalities: Horrific scenes of tortured bodies and piles of clothing found at prison likened to a slaughterhouse, guarded by cruel officials reminiscent of Hitler.

REBELS have uncovered tortured bodies, piles of clothes and various equipment used…