Fresh blow for Reeves as Labour’s anti-migration policies blamed for sluggish UK growth
Why anti-migration policies are predicted to hold back growth in the UK
- The Organisation for Economic Co-operation and Development (OECD) has warned that Rachel Reeves' tax hikes, spending cuts and anti-migration policies will place significant pressure on the UK economy over the next two years.
- The OECD forecasts the UK will experience the highest inflation among G7 nations this year at 3.5 per cent, and the second highest next year, trailing only the United States.
- Economic growth is projected to slow to just 1.2 per cent next year, with the unemployment rate expected to climb to 5 per cent by 2027.
- The report attributes the UK's economic struggles to sluggish labour productivity and weak working-age population growth, partly due to slowing inward migration, alongside past tax and spending adjustments.
- Rachel Reeves defended her recent Budget, stating it aims to cut waiting lists, borrowing, and the cost of living, while the Shadow Chancellor criticised her choices for potentially harming work, businesses, and investment.