The Tories and Reform UK hit out at tax rises after forecasts showed UK economic growth is to slow next year
Prime Minister Andy Burnham (Image: Getty)
Andy Burnham has been dealt a major blow as UK economic growth is expected to slow next year. The Organisation for Economic Co-operation and Development (OECD) has forecast that the economy is set to grow by 1% next year, down from its previous prediction of 1.1%.
Opposition parties warned that more tax hikes are not the answer to Britain’s economic woes ahead of next month’s budget. Tory Shadow Chancellor Andrew Griffith said: “The OECD have downgraded the UK’s growth for 2027 to just a third of the average growth rate of the G20. We can and should aspire to do much better.
“The OECD urge countries to control spending and improve public sector efficiency. Instead, this Government is trying to find new ways to tax you whilst having to pay interest rates on their borrowing which are the highest in the G7.”
Reform UK’s Robert Jenrick added: “The UK is forecast to grow much slower than the US with inflation still stuck at around 3%. And that’s before the possible shock to diesel supplies from a Trump export ban.
“Burnham doesn’t have the faintest clue how to get us back on track. His policy of more borrowing, spending and taxation failed before and will fail again.
“The only way to rescue our economy is to cut wasteful spending so we can cut taxes on work and lower energy prices for households.”
The economy is on course to have grown by 1.1% this year, according to the new forecasts by the OECD.
It is an update from a previous estimate of 0.9% growth, but is weaker than the 1.4% reported last year.
Mr Burnham admitted the state of Britain’s economy has worsened in recent months amid the Iran conflict, which has pushed up energy prices.
Speaking to reporters as he travelled to New York for the UN General Assembly, he said: “The truth of the matter is that because of the situation in the Middle East, the position changed, and has changed over the time I’ve been in. That’s just the reality of the situation that we’re in.
“And of course the message is that we want to see an end to the conflict as quickly as possible and we stand ready to play our part.”