Governments should avoid Covid spending cuts and tax rises, says OECD

In report on global economy, thinktank suggests extra borrowing is needed into 2021

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Governments must resist imposing spending cuts and hefty tax rises before their economies have recovered from the effects of coronavirus lockdowns, a leading global thinktank has warned.

In its quarterly health check of the global economy, the Organisation for Economic Co-operation and Development (OECD) said it would be necessary to continue borrowing extra funds into next year to support the worst-hit households and businesses despite concerns about mounting public sector debts.