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Britain's economy upgraded, but faces £30b of tax rises says IMF

Published 21/05/2024, 15:02
© Reuters.  Britain's economy upgraded, but faces £30b of tax rises says IMF

Proactive Investors - Britain’s economic prospects are looking a little better according to the IMF, but £30 billion of tax rises will be needed to balance the books.

GDP (gross domestic product) will grow this year by 0.7% said the IMF, up from 0.5% previously, adding: "The UK economy is approaching a soft landing, with a recovery in growth expected in 2024, strengthening in 2025."

Inflation is also expected to drop close to 2% with interest rates also heading down with three interest cuts expected this year and another slew in 2025.

Chancellor Jeremy Hunt seized on the report, suggesting its showed that the UK economy.

"The IMF has upgraded our growth for this year and forecast we will grow faster than any other large European country over the next six years.

However, the IMF cautioned Hunt not to cut national insurance contributions (NICs) or taxes any more adding that to fill the funding gap, the government might need to increase VAT, introduce road pricing and scrap the pensions triple lock.

Tomorrow, the Office for National Statistics is also expected to announce inflation dropped close to the Bank of England's 2% target in April.

Read more on Proactive Investors UK

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