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

Keir Starmer doesn’t commit to UK having fastest growth in G7 as Tories caution he may introduce more taxes despite large Budget changes

Keir Starmmer today dodged repeating his vow for the UK to have…

Anticipating Future Resignations: Trump’s Cabinet Faces Growing Turmoil, Notes Andrew Neil

The new administration has not even begun, and Donald Trump has not…

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…

Man found guilty of murdering nursing student Laken Riley asks for a new court case

Public defenders are seeking a new trial for the man recently found…

Efforts Ongoing to Locate Grandmother Believed to Have Fallen in 30-Foot Sinkhole

The search continues for a Pennsylvania woman who possibly fell into a…

North Carolina Mother Accused of Harming 6-Week Old Baby, Leaving Child in Car While at Work

A mother from North Carolina was taken into custody after reportedly hitting…

Uncovered: The hidden message on bullets used to murder UnitedHealthcare CEO Brian Thompson by an assassin as his spouse discloses their family had received unknown ‘threats’

The words scrawled on the bullets used to kill UnitedHealthcare CEO Brian…

Missouri Man Accused of Murdering Girlfriend Following Reported Abduction

A Missouri man who reported his girlfriend missing last week was charged…

Veterinarian in South Carolina shoots husband several times in the back following legal separation filing

A South Carolina veterinarian is facing murder charges after a shooting Sunday,…

Military veteran loses $12,000 after paying two checks to roofing company that failed to finish the work.

A DEVASTATED veteran is out $12,000 after he issued two checks to…

“Nevada Football Coach Accused of Engaging in Inappropriate Relationship with Underage Student”

The head coach of a Nevada high school football team has been…

“Footage Captures Teen Burglar Threatening Brit Mum Emma Lovell with Knife in Boxing Day Break-In”

CHILLING CCTV has revealed the moment two teen burglars broke into a…