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

Recent Photos of the man known as ‘assassin’ Brian Thompson are out as police disclose they have identified him & divers search Central Park lake.

TWO new photographs of the suspected shooter in the death of UnitedHealthcare…

My mother overcame discrimination during WWII and inspired others – now her story is a hit on Netflix featuring Oprah Winfrey and Susan Sarandon

IN a plane halfway across the Atlantic heading for Britain, Major Charity…

Danny Jones Wins “King of the Jungle” Title on “I’m A Celeb” show, tearfully defeating Coleen Rooney and sharing emotional moment with his wife Georgia

Danny Jones was crowned King Of The Jungle, beating Coleen Rooney in…

Assad’s ally Putin’s friend reportedly escapes Syria as rebels quickly take control of Damascus and Prime Minister is prepared to relinquish power.

SYRIA’S government has fallen in a stunning end to the 50-year rule…

Investigating John Lennon’s Alleged Illegitimate Child with Utilization of Late Beatles Star’s $25,000 Tooth, Four Decades After Assassination

A DENTIST who bought John Lennon’s tooth for £20,000 is on the…

Expert believes Assad’s 24-year rule collapsing signifies the end of Iran’s threat to Israel.

BASHAR al-Assad’s brutal regime has collapsed “like a house of cards” as…

Brian Thompson spotted getting into a taxi – new photos surface of UnitedHealthcare murder suspect

A few new photos have been released by police of the UnitedHealthcare…

Anger rises as British citizens are informed they can expect a significant delay in getting their rubbish collected, due to the Labour party silently dropping its proposal for biweekly trash pickups.

Households face having to wait weeks longer to have their bins emptied…

The residents of a peaceful city in California are unaware that a woman strolling with her dog was a major celebrity in the 1980s. Find out why she chose to leave the spotlight.

She famously bid adieu to Hollywood nearly 25 years ago and has…

Human remains discovered in a small plane recovered from the sea near Scotland’s coastline

Human remains have been recovered from the wreckage of a missing German…

Michail Antonio’s ex-wife rushes to his side following Ferrari crash, leaving West Ham star with a ‘broken leg,’ while club officials express concern about his condition

Michail Antonio’s ex-wife rushed to his bedside after a horror Ferrari crash…

Tragic Incident in Georgia Leaves 5 Dead, Including 2 Children

Five people, including two children, were found dead Saturday night in Georgia…