The IMF has warned that Andy Burnham cannot afford to boost public spending given the “challenging” UK budgetary outlook, with any support for energy bills needing to be offset by savings elsewhere.
In a stark warning to the incoming prime minister, the fund said on Thursday that the UK government’s response to the energy shock unleashed by the Iran war should remain “tightly targeted, temporary and budget-neutral”.
The backdrop of global volatility and edgy bond markets meant that it would already be difficult for the government to deliver the fiscal tightening it had promised, the IMF noted in its annual health check on the UK economy.
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