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

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…

Disturbing sight: Russian diplomat smiles during UN discussion of mother and 3 daughters killed by Putin’s missiles

This disturbing incident captured a Russian official smirking while hearing about the…

Florida Teacher Found Naked in School Where He Was Not Employed

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

Uncovering the Surprising Story of a Quiet British Market Town Turned Hotspot for Suspicious Offshore Money: How £146m Has Been Funneled into Property Purchases in this Seemingly Sleepy Location

With its cosy pubs, medieval parish church and quiet high street boasting…

Virginia School Bus Driver Arrested for Allegedly Touching Students Inappropriately

A Virginia school bus driver has been charged with inappropriately touching students…

A 19-year-old student made a frantic phone call from an unfamiliar number before disappearing during a walk 3 weeks ago.

A STUDENT made a desperate call from an unknown number before she…

Popular movies that Gen Z hasn’t seen yet exposed, featuring award-winning favorites.

CITIZEN Kane, Casino and Vertigo are among the top movies that Gen…

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…

New Clues Emerge in Investigation of UnitedHealthcare CEO’s Murder

Investigators are reportedly working with limited forensic evidence in Wednesday’s shooting of…

When did Paulette, Brian Thompson’s wife, marry the CEO of UnitedHealthcare?

BRIAN Thompson, CEO of UnitedHealthcare, was tragically assassinated in New York City…

Anders Breivik, the Neo-Nazi murderer who asked for early release 13 years post island massacre where 77 people died, will not be set free – court acknowledged ‘positive’ changes.

Anders Behring Breivik, a neo-Nazi killer who sought parole just 13 years…

Search is ongoing for shooter in mask who killed insurance company CEO named Brian Thompson

Investigators are going through clues discovered at the location of the deadly…