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

Parents in Georgia Face Charges for Allowing Teens to Drink at Home and Drive Under the Influence

A teenager and two parents are facing felonies in connection to a…

Pink-clothed friends carry casket of beauty tech who passed away in Belfast club: Crowds gather for funeral of 24-year-old known for her immense love.

In Belfast, people gathered to honor a young beauty technician who tragically…

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…

Ivanka Trump looks gorgeous at Club World Cup event while Donald Trump gives his opinion on Barron’s soccer abilities

Ivanka Trump made a dazzling appearance at the FIFA Club World Cup Draw…

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”…

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…

Urgent Search for 6 Men in Baltimore Bridge Collapse Ends with Final Victim Found After 43 Days

Plunged into complete darkness due to a power outage, the crew of…

“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…

Authorities Investigating Murder of 5-Year-Old Autistic Boy

An investigation is underway by Oregon authorities into the disappearance and death…

Ariana Grande opens up about facing pressure and weight loss speculations with raw emotion

A defiant Ariana Grande has revealed how she shields herself from the societal…

Elite Syrian forces retreat as rebels advance towards Damascus with determination to overthrow Assad, a close ally of Putin

SYRIA’S elite Tiger Forces have been forced to flee from Hama as…

Arrest Made in Colombia for Gang Murders, Including Ambush Killing by Female Suspect Dubbed ‘The Doll’

AN ALLEGED hitwoman has been arrested in Colombia over a string of…