Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

IMF warns Jeremy Hunt at risk of missing debt target

Published 17/04/2024, 14:50
© Reuters IMF warns Jeremy Hunt at risk of missing debt target

Proactive Investors - Chancellor Jeremy Hunt is at risk of missing five-year debt targets for the UK economy after cutting national insurance during the Spring Budget, the International Monetary Fund has warned.

Under self-imposed rules, each UK chancellor aims to get debt falling as a percentage of gross domestic product (GDP) by the final year of a five-year forecast.

However, the IMF forecasts UK debt to increase in every year until 2029, when it is expected to jump to 98% of GDP.

According to the IMF, such forecasts, which were higher than previously, were in part driven by Hunt’s move to cut national insurance by 2% in last month’s Spring Budget, as well as the Autumn Statement beforehand.

“Recent policy changes, such as a significant cut to NI in the UK, although part-funded by well-conceived revenue-raising measures, could worsen the debt trajectory in the medium term,” the IMF warned

“Population ageing and labour market mismatches are further expected to exert pressure on fiscal positions.”

The cuts had come as the government prepares for an inevitable general election, though the IMF warned those in power should refrain from such moves in the world's “biggest-ever election year”.

Read more on Proactive Investors UK


Latest comments

The IMF's track record on tracking the UKs economy is to say the least
Maybe if Rishi and crew paid more than 23% tax like the plebs have to, there wouldn't be a shortfall.
the main point here is not to expect any tax cuts in the foreseeable future.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.