Reeves urged to raise taxes and cut public spending as UK growth to stall after Trump tariffs
Rachel Reeves must hike taxes and slash spending to counter Trump tariffs: OECD
- The OECD has urged Rachel Reeves to increase taxes and cut public spending to bolster fiscal headroom amid rising prices and the impact of Donald Trump’s trade war.
- The OECD downgraded the UK's economic growth forecast for this year to 1.3 per cent and to 1 per cent in 2026.
- Defence secretary John Healey did not rule out tax rises to fund Britain’s “war readiness,” following funding concerns.
- Business secretary Jonathan Reynolds is set to meet his US counterpart to press for the removal of tariffs, as Labour ministers race against time to prevent Trump’s new 50 per cent tariffs on steel from hitting the UK.
- The UK and the US previously announced a trade deal to reduce levies on steel and aluminium to zero, but a 10 per cent tariff for other goods would remain.