IMF Tells UK to Stick to Fiscal Plan as Starmer Rivals Circle

The International Monetary Fund urged the UK to stick to plans to reduce borrowing and warned of limited space for tax increases as investors brace for a challenge to Keir Starmer’s premiership that could signal changes in economic policy.

In its Article IV annual health check of the economy on Monday, the fund warned of the need to control the welfare bill amid a volatile global backdrop and high public debt. It praised the Treasury’s targeted response to the energy crisis and said measures to limit the impact on households should remain both means-tested and temporary.