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OECD Warns UK Growth Hindered by Taxes, Spending Cuts

12/2/2025

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Summary

Story summary

The Organization for Economic Co-operation and Development (OECD) warns United Kingdom’s tight spending and higher taxes will hinder consumer spending, while forecasting 1.2% growth in 2025.
The 1.2% forecast is a slight upgrade from 1.4% in 2024.
The resignation of Richard Hughes, chair of the Office for Budget Responsibility (OBR), adds economic uncertainty.
The OECD expects growth to fall from 3.3% in 2024 to 3.2% in 2025, with concerns about productivity.

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Story summary

The Organization for Economic Co-operation and Development (OECD) warns United Kingdom’s tight spending and higher taxes will hinder consumer spending, while forecasting 1.2% growth in 2025.
The 1.2% forecast is a slight upgrade from 1.4% in 2024.
The resignation of Richard Hughes, chair of the Office for Budget Responsibility (OBR), adds economic uncertainty.
The OECD expects growth to fall from 3.3% in 2024 to 3.2% in 2025, with concerns about productivity.