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

The competition heats up as Danny Jones wins over Coleen Rooney in “I’m A Celebrity,” and now they will face off again for a chance to become TV stars, as ITV promises to boost their fame.

I’m A Celebrity’s Danny Jones and Coleen Rooney are set to go…

Get to know Tony Buzbee, the lawyer who made accusations against Jay-Z for sexually assaulting a teenager.

TONY Buzbee is a lawyer involved in some of the biggest lawsuits…

Syrian rebels discover hidden escape tunnels beneath opulent palace of Assad family following overthrow of tyrant’s regime

A video purportedly reveals the interior of the clandestine underground tunnel system…

Breaking News: 26-Year-Old Suspect Apprehended for Murder of UnitedHealthcare CEO

In Altoona, Pennsylvania, a man has been taken into custody in connection…

Rupert Murdoch faces setback in passing over his media empire control to his son due to family disagreement.

Rupert Murdoch’s attempt to solidify his oldest son’s authority over a major…

“Beyonce and Jay-Z Stand Together with Blue Ivy at Red Carpet Following Accusations Against Rapper”

Attending the premiere of the film Mufasa: The Lion King was Beyoncé…

Zookeeper, 52, tragically dies in tiger attack after forgetting to lock cage door

A TIGER has killed a zoo keeper in a horror attack after…

Alert: Woman from Kentucky has gone missing and requires essential medication

The Georgetown Police Department in Kentucky is currently looking for a 21-year-old…

Chancellor Rachel Reeves promises decisive action on Whitehall spending and calls for Cabinet to reduce state size

RACHEL Reeves vowed to take an “iron-fist” to Whitehall spending last night…

Passengers struggle with hijacker trying to enter cockpit and open door mid-flight

THESE are the terrifying moments passengers wrestled a plane hijacker to the…

Germany, France, and Austria refuse asylum to Syrian refugees after Assad’s fall

Austria is making arrangements to send back Syrian refugees, while Germany and…

Warning by David Lammy: The Syrian crisis may cause a new wave of migration to Europe, including the UK, as the Home Office freezes asylum decisions following Bashar al-Assad’s fall

According to David Lammy, the removal of Bashar al-Assad’s regime in Syria…