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

Police discover a bag belonging to the person allegedly targeting the UnitedHealthcare CEO close to a carousel after he fled New York City on a bus.

POLICE have found the backpack the suspected assassin of UnitedHealthcare CEO Brian…

Paris Jackson’s surprise engagement to Justin Long causes concerns for her well-known family members

Paris Jackson’s family members are expressing caution about her rapid engagement to…

Grandmother Found Dead After Falling into Sinkhole During 4-Day Search

A Pennsylvania woman who reportedly vanished on Monday after falling into a…

The arrest of the FBI agent’s son in connection with the murder of a 13-year-old boy

Police in Albuquerque have arrested a second suspect linked to the fatal…

Houston Lawyer Arrested for Fatally Shooting and Cremating Son with Special Needs

A man has been taken into custody and is facing charges of…

Possible Fake Gun Incident with United Healthcare CEO Could Be Connected to Hidden Message on Bullets

THE suspect who allegedly murdered an insurance company CEO may have put…

Donald Trump and Prince William to meet in Paris before Notre Dame reopening for discussions on ‘special relationship’

DONALD Trump has arrived in Paris and will meet Prince William ahead…

New Update: Police Sending DNA to Lab in Brian Thompson Shooting Case After Receiving Numerous Tips

Authorities are reportedly following up on hundreds of tips in Wednesday’s shooting…

“Notre Dame Reopening Ceremony Welcomed by Diverse Array of Dignitaries”

Donald Trump has been welcomed by President Emmanuel Macron as he arrived…

Family Member Shares Truth About JonBenet Ramsey’s Murder: Revealing Startling Details post-Netflix Documentary

When six-year-old child beauty queen JonBenet Ramsey woke on Christmas Day 1996…

Amanda Platell criticizes Harry for behaving as though he is the new Nelson Mandela and urges the prince to stop portraying himself as a victim.

Once again, Prince Harry played the victim card this week. He was…

A big snake swims in flood waters in Thailand after reportedly consuming a dog.

THIS is the terrifying moment a 20ft monster was spotted swimming along…