OECD Signals Tax Cuts Likely Out of Reach for UK Government
- Rising debt and interest rates tie the hands of the Treasury
- UK headed for second-slowest growth rate in G-7 this year
The headquarters of HM Treasury in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Organisation for Economic Cooperation and Development has warned the UK government it has “little fiscal space” for giveaways in comments that may dampen hopes for tax cuts before the next election.
In its latest biannual Economic Outlook, the Paris-based institution said the size of the Britain’s national debt leaves the public finances “significantly exposed to movements in interest rates.” To meet his fiscal rules, the government will need to keep the fiscal stance “restrictive over 2023-24,” it added.