Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

‘Significant action’ needed to stabilise UK finances, warns OECD

by September 18, 2024
September 18, 2024
‘Significant action’ needed to stabilise UK finances, warns OECD

The Organisation for Economic Co-operation and Development (OECD) has warned that “significant action” is required to stabilise the UK’s public finances, urging Chancellor Rachel Reeves to reform fiscal policy.

The OECD recommends scrapping stamp duty, scaling back the pension triple lock, and updating the council tax system.

The report highlights mounting financial pressures from healthcare, pensions, and climate change, which come on top of high debt, rising interest payments, and sluggish economic growth. It follows warnings from other institutions about Britain’s unsustainable debt, with the Office for Budget Responsibility recently forecasting that debt could reach 270% of GDP over the next 50 years.

Reeves, set to present her first budget on 30 October, is expected to increase taxes to tackle £22 billion in government overspending. The OECD suggests revising the pension triple lock, currently tied to the highest of 2.5%, inflation, or wage growth, by aligning it with an average of inflation and wage growth.

Additionally, the OECD calls for the abolition of stamp duty, claiming it discourages mobility in the housing market, and urges a reassessment of the current fiscal rules that equate public investment with day-to-day spending, potentially limiting investment in productivity-enhancing projects.

Other proposals include unfreezing fuel duty, simplifying income tax, and reducing the amount of interest that companies can deduct from their tax bills. The organisation also emphasised the need for updated property valuations for council tax, which are still based on 1991 figures.

The UK’s debt has soared to nearly 100% of GDP, exacerbated by the 2008 financial crisis, the pandemic, and rising energy prices. Economists caution that debt becomes unsustainable when interest payments outpace economic growth—a scenario now facing the UK. Around 9p in every £1 of government spending will be allocated to debt interest payments over the next five years.

The Treasury acknowledges the challenging fiscal environment and said that “difficult decisions lie ahead” as the chancellor prepares for the budget.

Read more:
‘Significant action’ needed to stabilise UK finances, warns OECD

0
FacebookTwitterGoogle +Pinterest
previous post
Asda co-owner Mohsin Issa steps back as Lord Rose takes temporary charge
next post
Battleground state voters blame Dems’ ‘toxic’ rhetoric for attempts on Trump’s life

You may also like

Man Arrested in Ongoing Criminal Probe into PPE...

June 13, 2024

Close Brothers sets aside £165m amid car loan...

February 12, 2025

‘SMEs Navigate Unprecedented ‘Poly-Crisis’ as Business Confidence Wavers’

November 8, 2023

Global supply chains brace for shock as Trump’s...

February 4, 2025

Dimitrios Kiourtziev: Portfolio Overview

March 3, 2025

Eton College to raise fees by 20% after...

August 31, 2024

The five challenges and opportunities for UK SMEs...

March 2, 2025

UK gender pay gap widens as childcare costs...

March 7, 2023

Rolls-Royce new electric model helps Sussex based luxury...

January 8, 2024

WhatsApp Faces Backlash Over Decision to Lower Minimum...

April 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • ‘Doctor Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 26, 2025
    • EPA urged to axe funds for ‘radical’ climate project accused of training judges, state AGs rally

      August 26, 2025
    • Bolton may be in hot water as FBI investigation expands beyond controversial book

      August 26, 2025
    • New Cato Paper: Immigrants Cut Victimization Rates, Boost Crime Reporting

      August 26, 2025
    • ‘Dr. Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 26, 2025
    • Fighter pilots take directions from AI in Pentagon’s groundbreaking test

      August 26, 2025

    Categories

    • Business (8,886)
    • Investing (2,241)
    • Politics (16,493)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved