IMF criticises government over tax plans

6th October 2022

The International Monetary Fund (IMF) warned the UK government against 'large and untargeted fiscal packages' following the Mini Budget.

The IMF stated that tax measures announced by Chancellor Kwasi Kwarteng in the recent Mini Budget are likely to increase inequality.

On 23 September, the Chancellor used the Mini Budget to announce tax cuts worth over £40 billion. Amongst the measures unveiled was a reduction in the basic rate of income tax; the reversal of the 1.25% rise in national insurance contributions (NICs) that came in this year; and the scrapping of the planned rise in corporation tax to 25%.

The IMF stated that whilst it understands that the measures are intended to boost economic growth, it has concerns that the UK's fiscal and monetary policies are working at 'cross purposes'.

Commenting on the IMF's warning, Lord Frost, Minister of State at the Cabinet Office, said:

'The IMF has consistently advocated highly conventional economic policies. It is following this approach that has produced years of slow growth and weak productivity.

'The only way forward for Britain is lower taxes, spending restraint, and significant economic reform.'

News Archive

Call Us: 01983 618888
Office Address
The Grain Store,
Cheeks Farm, Merstone Lane
Merstone, Isle of Wight. PO30 3DE
Registered Company 7798706 in England and Wales

Book an Appointment

We would like to use your information to send you emails regarding products or services you may be interested in. If you are happy for us to do so please tick the box below. For further details on how we store and manage your data please view our privacy policy. If you are not happy for us to do so, we will only use your information in relation to this enquiry.

Although we would like to be available to assist 24/7 the following times provide guidelines when qualified advisers are available to meet with you:

Monday – Friday 0800-2000