IMF Urges UK to Avoid Pre-Election Tax Cuts Amid Rising Debt

The Fund recommends higher taxes and spending cuts to stabilize public finances, despite an improved growth forecast.

The IMF upgraded the UK's 2024 growth forecast to 0.7% from 0.5%, citing strong early-year data.
It warned that recent tax cuts and insufficient budget allocations for health and social care could jeopardize fiscal stability.
The UK faces significant pressures from an ageing population and a record number of long-term sick individuals out of the workforce.
The IMF suggested new revenue measures, including higher carbon and road-usage taxes, and broadening VAT and inheritance tax bases.
Chancellor Jeremy Hunt welcomed the growth forecast but downplayed concerns over debt and fiscal policy.