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

Icy fog and snow at -6C before Christmas after Storm Darragh wreaks havoc in Britain

BRITS brace themselves for more Baltic weather as a -6C freezing fog…

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…

Revealing Assad’s brutalities: Horrific scenes of tortured bodies and piles of clothing found at prison likened to a slaughterhouse, guarded by cruel officials reminiscent of Hitler.

REBELS have uncovered tortured bodies, piles of clothes and various equipment used…

Former England Rugby Player Tom Voyce Feared Dead in Storm Darragh Floods: Police Report Car Swept Away During Attempt to Cross River Ford After Night Out with Friends

Former England rugby player Tom Voyce is believed to have died after…

Lawyer of alleged rape victim accuses Jay-Z of harassment to deflect from lawsuit after rapper claims blackmail attempt.

Tony Buzbee has accused Jay-Z of ‘harassing’ his family after the rapper’s…

Big Sean and Jhene Aiko: Speculation Grows about Potential Wedding in 2025

Could Big Sean and Jhene Aiko be secretly planning to tie the…

Photo of suspected killer of UnitedHealthcare CEO, Luigi Mangione, released

Luigi Mangione, the man charged with the murder of the CEO of…

Rachel Lindsay and Willie Jones: Are They Dating? Exciting New Relationship Revealed!

Rumors are circulating about Rachel Lindsay, the former leading lady of ABC’s…

Many Syrian asylum seekers may be deported after Bashar al-Assad’s downfall

Syrian asylum seekers could face deportation from Britain in the wake of…

What motivated Luigi Mangione to murder the CEO: psychedelics, back pain, or sexual dysfunction?

IN the gloom of a Manhattan dawn, the hooded killer emerged from…

Elderly woman missing near quicksand found deceased in remote estuary.

A body has been found in the search for a missing 74-year-old…

Investigation expands to include two additional hotel employees in the death of Liam Payne: Receptionist captured on video assisting the star to his room just before his balcony accident under scrutiny.

Police in Argentina are reportedly investigating a hotel worker who was filmed on…