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Higher taxes and spending cuts set to drag growth
September 24, 2025
|The Journal
HIGHER tax and spending cuts are set to drag on UK growth next year, adding to a hit from US President Donald Trump's tariff hikes and one of the highest inflation rates among the G7 economies, a new report has warned.
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The Organisation of Economic Cooperation and Development (OECD) said Britain's “tighter fiscal stance” meaning higher taxes and reduced government spending, is expected to weigh on the economy, with growth set to ease from 1.4% this year to 1% in 2026.
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