IMF Urges UK to Sustain Deficit Reduction

The IMF has urged Britain to stick to its deficit-reduction plans ahead of Finance Minister John Healey’s first budget, praising the UK as the only major advanced economy with clear plans to reduce borrowing. IMF chief economist Silvana Tenreyro warned that higher debt-interest costs and pressure to increase defense and energy-subsidy spending could derail that course, while elevated energy prices and borrowing costs threaten growth and household finances. Healey plans to press international partners for credible borrowing plans and stronger economic resilience, while also supporting families and businesses and keeping trade moving. The warning comes amid wider concerns that high public debt, rising financing costs, geopolitical tensions and spending demands are leaving governments with less room to respond to future shocks.