Tax rises and tighter spending to hold back UK growth, OECD says

The Organisation for Economic Co-operation and Development (OECD) says that the UK's economy will grow more slowly in the next few years because taxes will go up and the government will be more careful about how it spends money. This will make it even harder for the government to reach its economic and fiscal goals. The OECD's most recent study found that boosting taxes and lowering public spending could hurt consumer demand, make businesses wait longer to invest, and slow down the growth of productivity. This is bad news for the UK economy, which is already having a hard time because prices are going up and people don't trust the government. The study showed that consumers still don't have enough money to spend and their savings are getting smaller, so their finances are still quite tight. Prices are going up, and many businesses are putting off plans to grow because they don't know what the government has in mind for the future. The OECD praised efforts to balance public finances and keep inflation in check. However, it also noted that long-term growth could be hurt if the government continued cutting expenditure without putting more money into infrastructure, skills, housing, and innovation.

The panel also talked about problems with the UK's structure, like how productivity is rising too slowly, there aren't enough workers, and the economy is growing at different rates in different parts of the country. Business groups have said that high taxes for a long term could make people less likely to create enterprises and invest in the country, especially small and medium-sized businesses. The OECD pushed for changes that would increase exports, create more jobs, and provide people more training.It also made it clear how important it is to make laws that businesses and investors can trust again. The results will likely affect future budget talks and the wider issue of how to keep the budget in check while also promoting long-term economic growth. This is why the study is so essential for businesses and the UK economy.