The IMF has once again criticised Kwasi Kwarteng again saying that the Government’s tax cuts and energy support package has made the Bank of England’s battle against inflation more difficult.
IMF says that UK was on course for slowdown in growth from 3.6% this year to 0.3% in 2023 but this forecast was made before mini-budget which could “lift growth somewhat above that”.
In better news for the Chancellor it added that “The fiscal package is expected to lift growth somewhat above the forecast in the near term,”
The IMF also forecasts that both Germany and Italy will have weaker growth than UK next year.
The Chancellor also faced criticism in the House of Commons from his opposite number Rachel Reeves who asked “Are the Chancellor and the Prime Minister the last people left on earth who actually think that their plan is working?
She said: “This is a British crisis made in Downing Street. No other government is sabotaging their own country’s economic credibility as this government is…”
Reeves also accused Kwasi Kwarteng of being in a “dangerous state of denial” over the mini-Budget and again urges the Chancellor to reverse the economic plans set out in his fiscal statement
