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From the BBC
The International Monetary Fund has openly criticised the UK government over its plan for tax cuts, warning that the measures are likely to fuel the cost-of-living crisis.
In an unusually outspoken statement, the IMF said the proposal would be likely to increase inequality and add to pressures pushing up prices.
Markets have already raised alarm over the plans, sending the pound plunging.
The IMF works to stabilise the global economy, and one of its roles is to act as an early economic warning system.
It said it understood the package aimed to boost growth via tax cuts, but it warned that the measures could speed up the pace of price rises, which the UK's central bank is trying to bring down.
"Furthermore, the nature of the UK measures will likely increase inequality," it said.
The IMF said that the government publishing a fiscal plan on 23 November gave it an opportunity to "re-evaluate" tax measures, "especially those that benefit high income earners".
RichmondPark1
The fact that the journalist was wrong about England doesn't make the sentiment incorrect.
It doesn't, no.
But the unforeseen consequences do not affect just England and his ignorance perpetuates the myth.
Whitewavemark2
Callistemon21
He’s right though isn’t he?
No, he's not right.
Brexit affected not just England.
This is not just affecting England.
It's a misconception that the whole of the UK is in England.
Ok, it's pedantic but this person is a journalist.Of course he is wrong about England that hardly needs to be said I would have thought. ?
It's something that has to be explained frequently when over there but you'd think a journalist would get it right.
The fact that the journalist was wrong about England doesn't make the sentiment incorrect.
Callistemon21
^He’s right though isn’t he?^
No, he's not right.
Brexit affected not just England.
This is not just affecting England.
It's a misconception that the whole of the UK is in England.
Ok, it's pedantic but this person is a journalist.
Of course he is wrong about England that hardly needs to be said I would have thought. ?
Daisymae
The thing is all this mayhem will have a bill and the government will have to foot it. On the basis that they don't have any money, just our money, we will all pay in the end. The next action will be massive cuts to public services. This will actually fit in with their agenda of small state. It's obscene.
^ On the basis that they don't have any money, just our money, we will all pay in the end.^
You a re completely wrong about this, DaisyMae, but I'm not sure I have the will to go through it all again..
He’s right though isn’t he?
No, he's not right.
Brexit affected not just England.
This is not just affecting England.
It's a misconception that the whole of the UK is in England.
Ok, it's pedantic but this person is a journalist.
Just reading that they are threating cuts to benefits. To pay for tax cuts to the rich? Seems that they actually want public unrest.
The thing is all this mayhem will have a bill and the government will have to foot it. On the basis that they don't have any money, just our money, we will all pay in the end. The next action will be massive cuts to public services. This will actually fit in with their agenda of small state. It's obscene.
He’s right though isn’t he?
Brexit was the first severe hammer blow to the U.K. no other country in the world has turned on itself in such a way before.
Next we’ve had the energy crises, made worse by government policy. Domestic households and businesses are struggling and many will not survive.
Then we’ve had a major mortgage crises which effects we are yet to see, made worse by government policy.
Many young families will not survive this enormous shock, and will be made homeless. Our housing position is so bad that there will be nowhere they can be housed.
Then we had a pension crises which threatened to knock 1tn of the pension funds, as a result of government policy. The BoE has thankfully stepped in to save us all penury in our old age.
That was just in less than 1 week.
RichmondPark1
An Australian journalist yesterday, "Having shot itself in both feet with Brexit, sorry old England is moving on to knee-capping."
Um, he or she needs to realise it's the whole of the UK not just England!
A common mistake in Australia though.
Fleurpepper
Whitewavemark2
One thing that the BoE is worrying about are the pension trusts which are under enormous pressure.
Yes, this is truly worrying for our age group. And if the IMF had not intervened, it might well have felt like Armageddon, despite what someone said on GN this morning.
And same for our ACs and GCs- who see their mortage now refused, or going up hugely, just as energy and other prices continue to rise and rise.
Even though I haven’t got a massive pension I was feeling quite happy that I could help my kids out a bit if necessary so it was a shock to realise that my pension might be at risk.
We must be the laughing stock of the world!
An Australian journalist yesterday, "Having shot itself in both feet with Brexit, sorry old England is moving on to knee-capping."
Whitewavemark2
One thing that the BoE is worrying about are the pension trusts which are under enormous pressure.
Yes, this is truly worrying for our age group. And if the IMF had not intervened, it might well have felt like Armageddon, despite what someone said on GN this morning.
And same for our ACs and GCs- who see their mortage now refused, or going up hugely, just as energy and other prices continue to rise and rise.
It’s time for a GE so we, the people, can decide whose policies we support. Truss has no mandate from the public for the implementation of these crazy ideas.
MayBee70
Whitewavemark2
The budget has to be reversed. It has caused the crises, the only possible thing to get us back to a more even keel is to go back to square 1.
But even then I think the market would still be jittery imo.
Truss and Kwarteng must resign. We need a GE.But ‘it isn’t a budget’! Was very disappointed with Ken Clark on Sky News who seemed to be defending Kwarteng. And, like a lot of other Tory supporters kept saying how much he liked him.
I think Kwarteng is the monkey, she’s the organ grinder.
C4 reporting that the IMF are in talks with Truss and Kwarteng.
Whitewavemark2
The budget has to be reversed. It has caused the crises, the only possible thing to get us back to a more even keel is to go back to square 1.
But even then I think the market would still be jittery imo.
Truss and Kwarteng must resign. We need a GE.
But ‘it isn’t a budget’! Was very disappointed with Ken Clark on Sky News who seemed to be defending Kwarteng. And, like a lot of other Tory supporters kept saying how much he liked him.
MayBee70
It’s like a coup in a banana republic….
Seen today
IMF to UK WTF!
The budget has to be reversed. It has caused the crises, the only possible thing to get us back to a more even keel is to go back to square 1.
But even then I think the market would still be jittery imo.
Truss and Kwarteng must resign. We need a GE.
It’s like a coup in a banana republic….
She sacked the chief adviser to the Treasury and appointed one of the Tufton Street cronies. They're living in a different world and not listening to sane voices.
They've been egged on by some of the media too. The "Daily Mail" headline was something like "And now a real Conservative budget" (or something) and a journalist in the Telegraph was praising it.
Head in hands.
We move from a cheat and a liar to someone who is both ruthless and reckless.
We just need rid of them once and for all.
See my post at 15.54 Normandygirl
What puzzles me is why? No matter how incompetent you feel Liz Truss is, she is surrounded by economic experts who must have told her the outcome of this folly. The only logical reason I can find, is that this a deliberate " smash and grab", designed to allow the ERG to make a big a killing as possible before the gig is up. They know the days are numbered and the chances of winning the next election are slim at best. Disaster capitalism in action.
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