Reeves will have to raise taxes, charge for the NHS or ditch pensions triple lock, warns IMF
Reeves will have to ditch key party manifesto pledge, IMF warns
- The International Monetary Fund (IMF) commended Rachel Reeves' overall economic strategy but issued a warning regarding the UK's limited fiscal headroom.
- The IMF indicated that this lack of financial flexibility might compel the Chancellor to abandon key manifesto pledges.
- Suggested measures from the IMF included potentially increasing taxes on working people, replacing the state pension triple lock, or introducing charges for NHS services for higher-income users.
- The IMF also identified the ongoing impact of Donald Trump's tariffs as a challenge for the UK economy.
- Rachel Reeves responded by asserting that the government's decisions are fostering economic recovery and that their plans are designed to tackle inherited economic challenges.