IMF upgrades UK growth forecasts and warns Bank of England over 'delays' to interest rate cuts

The IMF upgraded forecasts for the UK economy today as Jeremy Hunt swiped at 'unjustified pessimism'.

It said the government need to bring in another £20billion in revenue by 2029, suggesting scrapping the triple lock on pensions, and hiking levies on motorists, property and inheritance duties. 'CPI inflation has fallen faster than was envisaged last year and is projected to return durably to target in early 2025.'

'This could be achieved, for example, by raising additional revenue from higher carbon and road-usage taxation, broadening the VAT and inheritance tax bases, and reforming capital gains and property taxation ,' the IMF said, noting it has made similar suggestions in previous assessments. In a harsh message on tax cuts, the IMF said: 'Against the backdrop of these challenges, as a general principle, staff would advise against additional tax cuts, unless they are credibly growth-enhancing and appropriately offset by high-quality deficit-reducing measures.'

Source: Loan Digest (loandigest.net)

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