IMF praises UK budget for sustainable tax increases and public investment

The International Monetary Fund (IMF) has praised UK Chancellor Rachel Reeves for her budget, highlighting sustainable tax increases and increased public investment. This marks a shift from the previous government's planned cuts. The Resolution Foundation noted that while the budget aims to improve public services, households will face continued pressure on living standards due to higher taxes and inflation. Real household income growth is projected to remain low. Reeves plans to borrow an additional £32 billion annually by the end of the parliament, alongside £41 billion from tax increases. This approach aims to enhance funding for schools, the NHS, and justice services.