huffingtonpost - 13 days ago

Keir Starmer and Rachel Reeves.Labour’s drive to bring down immigration is a “drag” on the UK’s economic growth, according to a highly-respected watchdog.In a fresh blow for Rachel Reeves, the Organisation for Economic Co-operation and Development also blamed her tax rises and government spending cuts for the UK’s sluggish performance.In its lookahead to the next two years, it said growth will slow from 1.4% this year to 1.2% next year, before edging up to just 1.3% in 2027.Meanwhile, inflation in Britain will be the highest of all the G7 advanced economies this year, at 3.5%, and will remain second highest in 2026 at 2.5%, behind only the United States.The OECD said: “Sluggish labour productivity and weak working-age population growth, partly due to slowing inward migration, will continue to act as a drag on the economy.”Home secretary Shabana Mahmood last month unveiled a fresh immigration crackdown as Labour tries to keep its pre-election promise to cut the number of people moving to the UK from abroad.The measures include making refugee status temporary and quadrupling the length of time it takes to gain permanent status in Britain from five to 20 years.Those seeking asylum in the UK will also be sent back to their home country once it is deemed to be safe, while human rights law will be overhauled to speed up deportations.In last week’s Budget, Reeves announced £26 billion of fresh tax rises, on top of the £40bn of hikes she unveiled a year ago.At the same time, the government is aiming to bring down the deficit by cutting public spending.The OECD said: “Continued fiscal consolidation will be a headwind to the economy, with past tax and spending adjustments weighing on household disposable income and slowing consumption.”Shadow chancellor Mel Stride said: “Rachel Reeves promised growth but growth is expected to weaken next year, because of her choices. This is the cost of policies that punish work, businesses and investment.”Related...Labour Civil War As Andy Burnham Hits Out At Shabana Mahmood s Immigration CrackdownZack Polanski: Labour Has Lost Its Soul On Immigration, Their Silent MPs Should Be Ashamed Children Could Be Deported Under Labour s Immigration Crackdown

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