The Organisation for Economic Co-operation and Development (OECD) has warned that interest rates will be higher for longer due to the recent Autumn Budget.
The OECD said that whilst the Budget would help to boost the UK economy in the short-term, changes to tax policy and spending mean that borrowing costs will fall more slowly.
OECD forecasts suggest that the economy will grow more slowly this year than previously anticipated. According to the OECD, the UK economy will grow by 0.9% this year, down from a previous prediction of 1.1%. The economy will then grow by 1.7% in 2025 and 1.3% in 2026.
Responding to the forecast, Chancellor Rachel Reeves said: ‘Growth is our number one priority.
‘Growth only matters if it’s matched by more money in people’s pockets.
‘This government will get our economy growing with our National Wealth Fund, reforming the remits of our regulators and pension megafunds to attract better investment, as well as reforming our planning laws – all so that we can rebuild Britain for good.’
11/12/2024
View all >
28/05/2025
No cuts to ISA allowance confirmed
Chancellor Rachel Reeves has confirmed that the annual tax-free ISA allowance won’t be reduced from £20,000.
READ MORE
Household Support Fund ‘needs reform’
Think tank the Resolution Foundation has stated that the Household Support Fund needs renewing and reforming to ensure it continues to help families through the cost-of-living squeeze.
Higher borrowing ‘increase prospect of tax rises’
Experts have warned that recent higher than anticipated government borrowing figures have increased the prospect of Chancellor Rachel Reeves raising taxes at the next Budget.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.