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

Former head girl attempts to claim £4.2m estate and 7-bed home by forging headmistress’ will, loses court case against family

A DISGRACED ex-head girl who forged her headmistress’ will to pocket her…

Speculation Soars as Assailant’s Expensive Backpack Linked to UnitedHealthcare CEO Brian Thompson’s Murder

The individual suspected of killing Brian Thompson, the CEO of UnitedHealthcare, was…

Hannah Kobayashi, a Hawaiian beauty, is believed to be a victim of a possible scam marriage.

Missing photographer Hannah Kobayashi may have fallen victim to a marriage scam…

Indiana man attempted to smother his mother using plastic wrap

Last week, a man from Indiana was accused of attempting to suffocate…

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…

The only remaining British captive in Gaza – my daughter has been detained for 425 days. I worry she might not survive due to lack of food.

A WOMAN is believed to be one of the few captives still…

First meeting held between Ukraine and Trump’s top team to discuss plan to end conflict with Russia.

TOP Ukrainian officials have held high level talks with US President-elect Donald…

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…

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…

Meghan Markle looks stunning in diamonds and strapless gown at Hollywood event

Meghan Markle dazzled during a solo red carpet appearance on Wednesday, as she…

Exploring the Evolution of Names in Britain: The Rise of Muhammad as a Popular Choice for Boys in the UK

Muhammad was today officially crowned the most popular name for baby boys…

A former intelligence officer suggests that Brian Thompson was killed by a professional hitman, citing three pieces of evidence indicating it was a planned murder.

THE assassin who executed CEO Brian Thompson outside a Manhattan hotel was…