UK Fiscal Stance Unsustainable Without More Tax Rises, OECD Says

British Chancellor Rachel Reeves will need to raise taxes further to get the public finances on a sustainable footing, the OECD said as it upgraded its growth forecasts for the UK.

In its first health check on the UK economy since the chancellor sharply increased both taxes and borrowing in her October budget, the global institution called for “prudent” fiscal policy to build a larger buffer against potential shocks like another increase in energy prices or rising trade tensions and protectionism.

“Rebuilding fiscal buffers and continuing to mobilize additional revenue, including by closing loopholes and reducing distortions in the tax ...