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Tom Clougherty, Executive Director of the Institute of Economic Affairs responds to the OECD Economic Outlook report

“The OECD’s forecast growth for the UK will barely sustain our ageing population; never mind delivering an upgrade in living standards. Worse still, the forecast of the highest inflation in the G7 will quickly eat away at any minor benefits we do feel. 

“This is a direct result of government policy to raise the cost of employment and make doing business more expensive. It’s time for the Government to get serious about growth. The Budget provides an opportunity for the Chancellor to fix the public finances and reform our tax system to lift the burden on the engine of the economy and boost economic dynamism.

“Radical action in November combined with a doubling down on planning and regulatory reform, the kind of which is talked up but rarely acted on, is the only way out of this mess.”

OECD Economic Outlook, Interim Report September 2025