The IMF in its latest report has warned Britain to stick to its fiscal plans and warns “domestic uncertainty” could hurt the economy
It says the UK must continue to reduce borrowing and control welfare and added that there is only limited space for tax rises
Andy Burnham used his ITV interview to try to calm markets after Friday’s selloff across the markets
He told ITV he “supports” the fiscal rules and tried to signal he would be fiscally responsible if he becomes Prime Minister
However in a Bloomberg interview last month he proposed exempting defence spending from the rules in order to borrow more.
The IMF upgraded the UK’s growth forecast from 0.8% to 1% in 2026
UK inflation is forecast at 3.2% in 2026 then 2.4% in 2027.
It should return to the Bank of England’s 2% target by end 2027.
