Tax hikes and spending cuts will put pressure on the UK economy over the next two years – and inflation will remain among the highest in the among the G7 economies, according to a new report.
The Organisation of Economic Co-operation 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”.
