Chancellor's high tax and cuts 'doom loop' will throttle economy

MORE taxes and spending cuts are set to throttle the economy while inflation remains stubbornly high. Conservatives said the prediction, from global trade body the Organisation of Economic Co-operation and Development, confirmed Rachel Reeves had led Britain into a “high tax, high inflation, low growth doom loop”.

- By Jonathan Walker

trade” worldwide. Writing in today’s Daily Express, Shadow Chancellor Sir Mel Stride said: “The OECD confirms what hardworking families already feel - under Labour, Britain is in a high tax, high inflation, low growth doom loop. Rachel Reeves seems to think the solution is yet more tax rises. The UK is teetering on the edge of stagflation, all driven by Labour's economic mismanagement. This should be a wake-up call to the Chancellor: you can’t tax your way to growth.”

The OECD says it expects inflation to be 3.5% across 2025, 0.4 percentage points above its previous forecast, and higher than in any other G7 country. Inflation will fall next year to 2.7%.