The UK economy: Taxes set to rise to stabilize public finances OECD warns of necessary tax hikes The Organisation for Economic Co-operation and Development (OECD) has emphasized the need for increased taxes to bolster public finances amidst economic uncertainties. The report comes alongside projections of up to four interest rate cuts next year by Bank of England Governor Andrew Bailey. Upgraded growth projections but concerns loom Although the UK's economic growth forecast for next year has been revised upwards to 1.7%, concerns have been raised regarding potential negative impacts on business investments due to Budget changes. The OECD anticipates that higher government spending might "crowd out" business investment despite positioning the UK as the top-performing G7 economy in 2023. Government's stance and challenges ahead Chancellor Rachel Reeves reiterated the government's commitment to prioritizing economic growth, emphasizing the importance of ensuring that increased growth translates into improved financial conditions for citizens. However, challenges lie ahead, with projections indicating a slower decline in interest rates and potential implications of national insurance contribution increases on businesses. Global economic outlook and political responses As the global economy is projected to grow by 3.2% this year and 3.3% next year, the UK's economic strategies and political promises are under scrutiny. Opposition leader Sir Keir Starmer's refusal to reiterate previous claims of leading G7 growth during a debate with Tory leader Kemi Badenoch sparked discussions on the government's economic priorities and future outlook. [TAG1]