Economics

Government should increase stimulus to aid UK’s economic recovery, says OECD

Low interest rates mean there is more room for fiscal stimulus and tax rises can wait

The UK has reached a “critical juncture”, with stagnant productivity, Brexit and regional inequality all posing urgent concerns, the OECD has warned, urging the UK government to increase spending to help those with uncertain futures.

In its survey of the UK economy, published on 14 October, the organisation said tax rises can wait until after the country begins to recover from the pandemic. There is more room for fiscal stimulus from the government due to low interest rates, the organisation added.

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