Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email Email * SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our Privacy noticeThe UK Government faces tough tax choices in the years ahead with mounting public spending pressures versus sluggish economic growth, according to new forecasts. The accountancy giant is forecasting UK gross domestic product (GDP) to rise by 1.2% over 2025 and 1.1% in 2026. This is likely to result in tax rises in the autumn Budget, rather than cutbacks to spending on public services, KPMG forecast. Ms Selfin said the Bank of England will “proceed cautiously” but that slowing economic growth and a weakening jobs market means it is likely to ease borrowing costs before the end of the year.
