IMF urges Reeves to temper debt levels to avoid triggering 'adverse market reaction'

IMF encourages tax rises

Chancellor Rachel Reeves should proceed with tax hikes to get a grip on debt management in the upcoming Autumn Budget, the International Monetary Fund has warned.

Risks surrounding debt projections are "elevated and highly tilted to the upside" in advanced economies such as the UK, the IMF said in a pre-released chapter of its forthcoming Fiscal Monitor report.  The United Nations' financial agency also identified the UK and the US as two major economies with "debt growing at a faster pace than in the pre-pandemic years" and urged both countries to act immediately. IFS warns Reeves against ramping up public debt as chancellor weighs change to fiscal rules "Postponing adjustments would only make the required correction larger. Even more, wait...