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IMF criticizes Britain over tax cuts that will likely increase inequality

IMF urges UK government to re-evaluate Mini Budget

The IMF has warned that the UK’s Mini Budget could have serious negative economic consequences, recommending against its implementation.

Transcripts for BBCNEWS BBC News 20240604 09:03:00

the imf said that the government s fiscal plan in late november would give it an opportunity to re evaluate tax measures especially those which benefit high income earners. the uk government proposals would scrap the top rate of income tax and end a cap on bankers bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound. on monday the pound fell to record lows against the dollar. some of the country s biggest lenders have suspended mortgage deals amid the uncertainty. the treasury said: we are focused on growing the economy to raise living standards for everyone. adnan mazarei is a former deputy director at the imf. here s his reaction on the today programme. the imf doesn t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies,

Bank of England takes emergency action to stabilise UK economy, after earlier IMF warning

The central bank warned of a "material risk to UK financial stability” if market dysfunction continued.

Transcripts for BBCNEWS BBC News 20240604 08:03:00

especially those that benefit high income earners. the current uk government proposals would scrap the top rate of income tax, and end a cap on bankers bonuses, among other measures. the announcement on friday sparked financial turmoil, as investors dumped the pound. on monday the pound fell to record lows against the dollar. some of the country s biggest lenders suspended mortgage deals amid the uncertainty. the treasury said: we are focused on growing the economy to raise living standards for everyone. adnan mazarei, former deputy director at the imf speaking on the today programme to sean farrington gave this reaction. the imf doesn t make such strong statements about g7 countries. these statements are common with regard to emerging market countries with problematic policies, but not often about g7 countries.

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