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

Rebel Leader Abu Mohammed al-Jolani who has a £8m bounty on his head and once praised 9/11 hijackers, played a role in toppling Assad.

BASHAR al-Assad was toppled by rebel leader Abu Mohammed al-Jolani – who…

Exploring the dark realm of Assad: From using chemical weapons on children to committing widespread killings as the tyrant’s harsh 24-year rule comes to a close

BASHAR al-Assad’s 24-year rule over Syria has finally crumbled, marking the end…

Investigating John Lennon’s Alleged Illegitimate Child with Utilization of Late Beatles Star’s $25,000 Tooth, Four Decades After Assassination

A DENTIST who bought John Lennon’s tooth for £20,000 is on the…

“Ballerina from ‘Black Swan’ film fails to use self-defense as a legal argument and receives a 20-year prison sentence.”

Ashley Benefield, a ballerina and aspiring model, was put on trial for…

Controversy Erupts as EU Political Party mistakenly shows Falkland Islands as part of Argentina on a map and later acknowledges the error

EU politicians have caused fury after sharing a map depicting the Falkland…

Murder Suspect from Florida Passes Away in Car Accident while Evading Authorities

A Florida man died in a car crash early Friday while fleeing…

Michail Antonio’s ex-wife rushes to his side following Ferrari crash, leaving West Ham star with a ‘broken leg,’ while club officials express concern about his condition

Michail Antonio’s ex-wife rushed to his bedside after a horror Ferrari crash…

Brian Thompson, a killer, utilized a scarce firearm from World War II to murder a CEO, adding to the mystery of his disappearance like a ghost.

BRIAN Thompson could have been assassinated with a rare WW2-inspired spy gun…

Russian police conduct large-scale raids to capture and enlist men for Putin’s military following the loss of 45,000 troops in a month

CHILLING footage shows Putin’s minions grabbing terrified civilians off the streets and…

Oti Mabuse kisses husband Marius Lepure as she is the last star evicted from ‘I’m A Celeb’ jungle, final three contestants unveiled

Strictly Come Dancing’s Oti Mabuse was the ninth campmate to be voted…

Insiders from the police share discoveries in assassin’s backpack as search area is expanded.

A backpack found by officers in the hunt for UnitedHealthcare CEO Brian…

A 13-year-old girl is left hanging 60 feet in the air after falling from a Ferris wheel, causing panic among onlookers.

A TEENAGE girl was left hanging 60ft in the air after she…