UK Economy Faces Slower Growth and Ballooning Debt Costs

The UK's economy is facing slower growth and ballooning debt costs ahead of Chancellor John Healey's first Budget next month, according to a report by the Organisation for Economic Co-operation and Development (OECD).

The OECD downgraded its forecast for UK growth from 1.1% to 1%, citing higher fuel prices caused by the ongoing conflict in the Middle East and Russia-Ukraine war.

IMF head Kristalina Georgieva warned that global economic shocks have pushed up debt levels, saying 'it's time to take action' to contain borrowing costs.

The UK government faces a difficult balancing act as it tries to offer more support to households while sticking to Labour's manifesto commitments on tax and fiscal rules.

Ryanair's chief executive Michael O'Leary warned that fuel prices will be 'materially higher' next summer, with the airline's fuel bill expected to jump by $1.5bn (£1.1bn) to $7.5bn.