IMF Cautions UK Against Tax Cuts, Foresees Slower Growth Than G7 Peers
• IMF warns UK Chancellor Hunt against tax cuts in upcoming budget, says spending on services and investments should be prioritized
• IMF forecasts UK growth of 0.5% in 2023 and 0.6% in 2024, slower than other G7 countries
• IMF advises against "further tax cuts" until public finances are repaired from pandemic and war impacts
• Hunt rejects IMF advice, believes "smart tax reductions" can boost growth, but signals tax cuts in budget will be smaller than expected
• IMF predicts "soft landing" for global economy, raises 2023-24 global growth forecasts to 3.1% though still below pre-pandemic levels