Brits are facing the highest inflation in the G7 as the country reels from the impact of Labour's tax raid.
The OECD has given a stark warning about the backdrop for Rachel Reeves as she prepares for a crucial Budget.
The international body said price pressures would be worse in Britain this year than any other major economy - and only behind the US next year.
Growth has been pencilled in marginally higher this year at 1.4 per cent. But it is then seen as dropping to 1 per cent in 2026 as higher tax and spending cuts squash activity, adding to a hit from US President Donald Trump's tariff hikes.
The report emerged as separate PMI figures suggested growth in the private sector has slowed to its weakest level since May - with higher business costs meaning 'subdued' demand and further job cuts.
