Reeves warned of budget rules as the UK Economic Cooperation and Development Organization urges tax revenues to enhance tax revenues

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Rachel Reeves is at risk of violating her budget bases after she left herself with the “very thin” financial temporary stores, and the Organization for Economic Cooperation and Development has warned, because she urged the UK counselor to enhance tax revenues.

OECD reduced UK growth forecast on Tuesday and called on the work government to increase efforts to strengthen the budget preparation room at a time when the UK faces “significant negative risks to growth.”

The Organization for Economic Cooperation and Development said in its latest global expectations, as it reduced the economic momentum in the United Kingdom in its latest global expectations, as the country’s growth expectations reduced 1.3 percent, from 1.4 percent in March. Production will expand by only 1 percent in 2026, and the Organization for Economic Cooperation and Development added more softer than its previous prediction by 1.2 percent.

The Paris Economic Cooperation and Development Organization said that the “balanced approach” of public financial resources should combine targeted spending discounts with new tax education measures. These may include “revenue lifting measures such as re -evaluation of the council tax ranges based on the values ​​of updated property” in addition to removing “distortions” in the tax system.

The international government organization said: “The state of public financial affairs poses important risks on the negative aspect of expectations if the financial rules are fulfilled.” “Currently, very thin financial temporary stores can be insufficient to provide adequate support without breaching financial rules in a renewed negative shock.”

Ministers wander Distinguished departments budgets Before reviewing government spending next week, while Download Street also offers MPS Backbench Labor calls to reduce the planned discounts. The pressure on Reeves is likely to increase in the period before the autumn budget, especially if the budget responsibility office reduces its growth expectations.

The Economic Cooperation and Development Organization said that the UK Treasury will face continuous stress from the high debt benefits. It expected that the total debts of the government would rise as a share of GDP over the next two years, leaving more than 104 percent in 2026 compared to 101.3 percent in 2024.

“To address all these problems, especially when you already have very high debts, you need to work on the aspect of revenue and on the side of spending; for this reason, adhering to the financial rules and the ability to maintain financial discipline is very important,” said Alfaro Pereira, chief economist in OECD, in an interview.

An inflation will remain Above the target This year, it works by 3.1 percent, before starting to 2.3 percent in 2026, said the Organization for Economic Cooperation and Development. But given dull growth, the Bank of England must be able to continue to reduce the main interest rate from 4.25 percent to 3.5 percent in the second quarter of 2026.

“The momentum weakens, with the deterioration of commercial feelings quickly,” said the Organization for Economic Cooperation and Development, adding that consumer confidence remains “depressed.” Meanwhile, surveyed measures decreased for new export orders, given Increased definitions facing UK exports To the United States, even after the trade agreement between the Trump administration and the Sir Kerr Starmer government was presented.

“The United Kingdom was the fastest growing economy in the Group of Seven for the first three months of this year, and interest rates have been reduced four times, but we know that there is more to do it.” “I am determined to move forward and faster to put more money in people’s pockets through our plan to change.”