The International Monetary Fund warned the British government today, Tuesday, that it may not be able to meet its debt targets, stating that "the United Kingdom must not cut taxes before the elections scheduled for later this year." The Fund added that the British government may need to implement tax increases in the future.
The IMF raised its growth forecast for the UK economy in 2024 to 0.7 percent, up from the April forecast of 0.5 percent, an increase reflecting strong growth data in early 2024, which Prime Minister Rishi Sunak, struggling to win over voters, will welcome. However, the IMF's annual report on the British economy also criticized Sunak's government policies, particularly the recent tax cuts related to reducing social security contributions.
