Occed says that growth in the UK must be in the midst of pressure on public financial affairs

The Economic Cooperation and Development Organization (OECD) said on Tuesday that economic growth in the United Kingdom is expected to suffocate it continuous pressure in public financial affairs in the country.

The UK is expected to grow by 1.3 % in 2025 before slowing down to 1 % in 2026, He said the Organization for Economic Cooperation and Development said in its latest global economic outlook Inform, “it has been diluted due to the increasing commercial tensions, the most compromised financial conditions, and the high uncertainty.”

The organization expected that the growth “will remain modest”, is affected by reinforced trade tensions and the uncertainty surrounding the consumer’s confidence and work morale.

The Organization for Economic Cooperation and Development said: “It is expected that clouds will be compensated for external demand, special consumption and investment in business on the positive effects of past autumn budget measures on the government’s consumption and investment.”

While the budget deficit is expected to improve from 5.3 % in 2025 to 4.5 % in 2026, according to the expectations of the Organization for Economic Cooperation and Development, debt interest interest spending is still high. Public debt is scheduled to continue to rise and reach 104 % of GDP (GDP) in 2026, the Organization for Economic Cooperation and Development said.

The Labor Government and Minister of Finance Rachel Reeves repeatedly said that their priority is to enhance growth and absorb the country’s public affairs. In government spending plans announced last October, Reeves committed to the financial rules imposed by them, daily spending must be fulfilled through tax revenues, and public debt will decrease as a share of economic production by 2029-30.

She has repeatedly said that the financial rules are “negotiable” although the measures that leave their small field of maneuvering in the state of unexpected economic shocks, amid dull growth of the United Kingdom, high borrowing costs, broader global trade tensions and uncertainty for companies.

While the Organization for Economic Cooperation and Development agreed that “the financial wisdom is required because the critical position is gradually abandoning”, it warned that “the efforts made to rebuild temporary warehouses must intensify in the face of the budget policy that is strongly restricted and strong risks to growth, while public investments in productivity must be preserved.”

The “very thin financial warehouses” may not prove to be enough to provide support without violating the financial rules if more shocks are achieved.

Since his arrival to power a little more than a year ago, the work government has already been A group of social welfare spending has announcedThe high employer tax and planning repairs designed to reduce red projects, increase infrastructure projects and housing development. It also announced an increase in defensive spending to 2.5 % of GDP by 2027, which will be funded through discounts in external aid.

After restricting public borrowing and excluding more tax increase, there are now escalating speculation that Reeves can announce more budget discounts in reviewing spending on June 11.

The Organization for Economic Cooperation and Development urges the government to adhere to its plans to enhance public financial affairs and connect its ambition Financial plansIncluding through the next review.

“The balanced approach should combine targeted spending cuts, including the closure of tax gaps; revenue collection measures such as re -evaluation of the council tax domains based on the values ​​of updated property; and removing distortions in the tax system,” he pointed out.

The United Kingdom also called for a decrease in the participation of the labor market by implementing the reforms supporting the work to the welfare state “with the most vulnerable”.