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OECD warns Reeves higher taxes and spending restraint will limit consumer expenditure

02.12.2025 12:00 | The Guardian World

UK economy will grow faster than France, Germany and Italy but slower than US next year, report predictsBusiness live – latest updatesRachel Reeves has been warned by a leading thinktank that tight government spending and higher taxes will restrict consumer expenditure, despite predicting the UK economy will grow at a faster pace than France, Germany and Italy next year.Analysts at the Organisation for Economic Cooperation and Development (OECD) said the government’s ongoing “fiscal consolidation” – meaning higher taxes and reduced government spending – will act as a “headwind” to the UK economy, with “past tax and spending adjustments weighing on household disposable income and slowing consumption”. Continue reading...

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