The economic group claimed that larger spending was needed than what the government’s existing budget plans represented in order to implement policies like maintaining high-quality public services and making “critical” investments to spur growth.
The Fund, which is largely considered as the most authoritative economic agency in the world, announced that its analysts had advised the UK Treasury not to cut taxes in what would be perceived as a bombshell intervention ahead of this year’s election.
Furthermore, it cast doubt on the chancellor’s capacity to adhere to his own budgetary constraints by expressing skepticism about his spending plans for the upcoming years.
The remarks were released in conjunction with the Fund’s most recent revision to its economic projections, following the chancellor’s indication that tax cuts will be included in the spring budget of March.
An IMF spokesman stated: “More spending will be required over the medium term than is currently reflected in the government’s budget plans in order to maintain high-quality public services and make critical public investments to spur growth and meet the net zero targets, as noted in the 2023 Article IV consultation.
“It will already be necessary to produce more superior cost savings, tax included, in order to meet these demands.
“The IMF has suggested tightening the laws governing carbon and real estate, closing tax breaks related to wealth and income, and changing the triple lock on pensions.
