IMF sounds alarm on UK tax cut plans

IMF warns Britain’s economic outlook could be ‘disastrous’ unless the government changes course
The International Monetary Fund (IMF) has warned that the economic outlook for the UK would be disastrous if the government’s planned budget cuts go ahead. In its annual report published on Monday, the fund said that the country was set to fall into recession later this year.

If these cuts go ahead, the UK unemployment rate may hit 10 percent.
According to the IMF, the UK economy will suffer if the government cuts corporation tax and personal income tax rates.

The fund says that the government should not countenance any reduction in public spending.
In order to keep the UK out of recession, the IMF says that the government should reconsider its approach to austerity measures and not accept any reductions in public spending.

The IMF said the government should introduce a balanced fiscal policy, including increasing taxes.
The IMF said that cutting corporation tax and personal income taxes would lead to a further loss of jobs. The fund suggests that the government should instead increase taxes on the rich to help boost the economy.

The IMF believes that the government should take action to address its deficit.
The IMF argues that the government’s deficit is already unsustainable and that it should act to reduce spending to avoid future problems.

The fund says that it hopes that the government will consider changing course and introducing stimulus packages in the event of a slump.
The IMF believes that if the government does not act now, it risks causing a disaster for the UK economy.

The IMF expressed concern over the UK’s current account position.
It says that the UK’s trade surplus is at risk and that the government should look for ways to improve its balance sheet.

The IMF sounded its warning over proposed cuts to corporation taxes in the UK following Brexit. In a statement, it said the move would undermine efforts to boost investment and create jobs. The organization joined a chorus of warnings about the potential economic impact of a no-deal departure from the EU. IMF Managing Director Christine Lagarde said: “Tax competition should not trump long-term priorities for public finances, including investing in productive capacity and supporting job creation.” She warned that a disorderly exit could have significant implications for the country’s economy. The IMF has previously called for a higher rate of corporation tax in the UK. However, Chancellor Philip Hammond recently announced his intention to lower the top rate of corporate tax to 21 percent.