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

Attorney for Hannah Kobayashi criticizes photo sent to sister as part of ‘green card marriage’ investigation

THE lawyer representing the family of missing Hannah Kobayashi has called out…

First meeting held between Ukraine and Trump’s top team to discuss plan to end conflict with Russia.

TOP Ukrainian officials have held high level talks with US President-elect Donald…

Unveiling the Hidden Meaning of the 3-Word Message on Bullets in Brian Thompson’s Assassination

THE words inscribed on the bullets the gunman used to execute in…

“The Pope Receives a Custom-Made All-Electric ‘G-Wagon Popemobile’ as a Gift”

Pope Francis has a new set of wheels to roll around the…

Florida Teacher Found Naked in School Where He Was Not Employed

A teacher at a Florida charter upper level school was found naked…

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…

Police missed the opportunity to discover the body of a severely malnourished three-year-old boy who was buried in a garden by his vegan parents. The parents were later arrested in a dirty, off-grid caravan where they had been hiding for a year.

This is the moment police raided the home of tragic Abiyah Yasharahyalah…

Unveiling Putin’s Secret Space Weapon: The Mysterious Cosmos 2553 Satellite Equipped with a Dummy Warhead, Potentially Posing Threat to Rival Spacecraft and Earth’s Stability

A mysterious Russian satellite soaring at the outer limits of orbit around…

Claim by former winner that creators of BBC and MasterChef show have supported Gregg Wallace’s behavior for two decades

A former Masterchef winner has claimed BBC show makers spent 20 years…

Gregg Wallace’s ghostwriter Shannon Kyle alleges that the star made inappropriate sexual comments and touched her inappropriately, but she continued working because she was afraid of losing her job.

Accusations have been made by the ghostwriter of Gregg Wallace’s biography, claiming…

“Woman Faces Massive Repair Bill after HOA Neglects Fence Maintenance for 20 Years – Their Explanation Only Adds to the Problem”

A homeowner in Texas is facing a hefty bill to replace her…

“China Advances with Construction of High-Speed 621MPH Floating Train Track Faster Than a Plane”

A FLOATING train that is faster than a plane has begun construction,…