IMF warns Brown not to raise taxes in Budget
IMF says Gordon Brown's 'credibility' will face a cruicial test in the Budget
The International Monetary
Fund has told
Gordon
Brown to reduce spending rather than raise tax in order to shore
up the public finances.
According to the FT
, the IMF said the chancellor’s ‘credibility’ in pursuing a
tight spending round would be put to a ‘critical test’.
In its Article IV consultation, however, concluding December’s preliminary
annual review of the UK economy, the IMF did acknowledge that the performance of
the UK economy had been ‘impressive’.
Further reading:
ITEM Club warns of disappointment for chancellor
Whitehall probe slams Treasury’s PFI numbers