Rachel Reeves will oversee just one per cent growth next year in the UK economy, according to the OECD.

Higher taxes and the sting from US tariffs are set to restrain UK growth, according to forecasters at the Organisation of Economic Co-operation and Development (OECD), with inflation soaring above all other countries other than the US.

The OECD’s latest update on the state of the global economy said the UK’s “tighter fiscal stance ” means growth will hit one per cent next year.

This is an unchanged prediction from its last forecast although it upgraded its UK growth outlook for 2025 from 1.3 per cent to 1.4 per cent.

The OECD’s forecasts are closely watched by City economists and government officials as a key indicator of how the UK economy compares with the world’s most dominant e

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