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

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…

Second death from Storm Darragh: Man killed as tree falls on his car, thousands of homes remain powerless after strong 96mph winds.

A second victim has been claimed by Storm Darragh after a man…

Prince William happily greets Donald Trump at British Embassy in Paris, receiving praise as a ‘good one’ by the incoming US President.

Prince William was praised by Donald Trump as a ‘good man’ and…

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…

Test Your Vision and IQ: Can You Spot 11 Hidden Bugs in 17 Seconds Along with the Moth?

Test your observation skills with this challenging task involving insects and other…

Iowa Mother Faces Charges Following Toddler Son’s Bathtub Drowning

An Iowa mother was arrested on child endangerment and neglect charges after…

Police nearing arrest of the shooter who targeted CEO Brian Thompson and escaped on a bus to Atlanta, FBI now offers $50,000 reward

COPS are reportedly closing in on the killer of UnitedHealthcare CEO Brian…

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…

Unusual element spotted in picture of Trump welcoming French president Macron during his Paris visit for the reopening of Notre-Dame.

Donald Trump awkwardly shook hands with the leader of France during a visit to…

Syrian rebels advance towards Damascus: Bashar al-Assad missing as his troops retreat to Iraq and opposition forces approach outskirts of capital

Syrian opposition fighters have advanced to the outskirts of the Damascus capital,…

“Pope Francis Raises Concerns Over Health as Large Bruise on Chin and Swollen Neck Noticed at Ceremony”

Pope Francis has raised fresh health concerns after being seen with a…

Storm Darragh’s first victim struck by falling tree hitting van, causing destruction with 93mph winds and power outages shown in shocking pictures

A man in his 40s has died after a tree fell onto…