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 suspect in the murder of Brian Thompson might be either an unhappy worker or a customer

New York police suggest the man who fatally shot UnitedHealthcare CEO Brian…

Catherine Zeta-Jones, 55, looks stunning in a royal blue dress as she shows affection with husband Michael Douglas, 88, at the start of The Red Sea International Film Festival

They celebrated their 24th wedding anniversary last month.  Catherine Zeta-Jones and Michael…

Instagram celebrity Lili Spada passes away at 42 after unexpected cancer fight, discovering tumor unexpectedly

A GLAM beauty influencer has tragically died of cancer aged 42. Lilian…

Chuck Norris, 84, announces the passing of his mother at 103 and pays tribute to her as a source of inspiration.

CHUCK Norris has revealed his mum has died aged 103 in a…

“Essential Information about UK Government Emergency Alert for Storm Darragh – Stay Informed!”

The UK government has issued an emergency alert to the mobile phones…

Man sentenced to 12 years in prison after giving a woman abortion pills without her knowledge, causing her to have a miscarriage by mixing them into her orange juice.

A video shows the moment a man was handed abortion pills which…

Man jailed for causing woman to miscarry by putting abortion pills in her orange juice – victim heartbroken over losing opportunity to be a mother

A man who made a woman have a miscarriage by secretly spiking…

Rod Stewart criticizes Gregg Wallace for insulting his wife during Celebrity MasterChef appearance

Rod Stewart criticized Gregg Wallace once again on Thursday, following his recent…

Huge fire destroys water park in Costa Del Sol as slide catches fire and smoke spreads for miles

A MASSIVE inferno ripped through a Brit-favourite water park in Costa Del…

Rare red warning from Met Office: Brits advised to stay indoors and secure Christmas decorations as Storm Darragh brings 90mph winds to the UK

Britons were warned to stay indoors and strap down their Christmas decorations…

Lawyer Hannah Kobayashi Defends Fundraiser for Mexico Search and Urges State Department to Assist due to Increased Need

HANNAH Kobayashi’s family lawyer has fired back at backlash over their request…

Kate Middleton looks amazing in a bright red coat and black bow as she attends carol concert at Westminster Abbey

The Princess of Wales today arrived at Westminster Abbey to lead her…