OECD forecasts will be blow to Sunak’s claims UK economy is improving

UK's growth will be least in G7 by 2025, OECD expects, as low business investment and multiple pressures bear down

• UK will be worst performer in G7 next year, OECD forecasts

A lack of skilled workers in the country is pushing up UK wages. The dearth of affordable housing has seen landlords put up rent by an average of 9% in a single year, weighing on inflation. New costs and controls at the border after Brexit are creating headaches for exporting companies.

This cocktail of pressures on the UK economy has prompted analysts from the Organisation for Economic Co-operation and Development (OECD) to undercut the UK's own national forecasts for growth. By 2025, the Paris-based thinktank says, UK growth will be below that of any advanced economy in the G7.