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OECD warns Reeves higher taxes and spending restraint will limit consumer expenditure
UK economy will grow faster than France, Germany and Italy but slower than US next year, report predicts
Rachel 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”.
Source: www.theguardian.com
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