The UK's fiscal stance has been deemed unsustainable by the OECD, which suggests that additional tax increases are necessary.

The assessment follows a recent budget by Chancellor Rachel Reeves that included significant tax hikes and increased borrowing.

While the OECD has upgraded its growth forecasts for the UK, it emphasizes the importance of a "prudent" fiscal policy to protect the economy from potential shocks, such as rising energy prices and escalating trade tensions.

The organization also highlights the need for a larger financial buffer to navigate future economic uncertainties.

The UK government is seeking to stabilize public finances amidst ongoing challenges in the global economic landscape.