Kwarteng says his tax cut plan led to IMF raising UK growth forecast

Posted on October 11, 2022Comments Off on Kwarteng says his tax cut plan led to IMF raising UK growth forecast

© Reuters. FILE PHOTO: British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng visit a construction site for a medical innovation campus, on day three of the Conservative Party annual conference at the International Convention Centre in Birmi

LONDON (Reuters) – British finance minister Kwasi Kwarteng said on Tuesday that the International Monetary Fund had increased its growth expectations for Britain as a result of fiscal policies that he announced last month.

“The IMF said our mini budget has increased the forecast for growth,” Kwarteng said in parliament in response to criticism from the opposition Labour Party of his tax cuts plans which sowed turmoil in financial markets.

Earlier, the IMF said in a report on the global economy that Britain’s fiscal package “was expected to lift growth somewhat” above its forecast for a 0.3% economic expansion in 2023 which it finalised before Kwarteng’s September announcement.

In July, the IMF said it expected Britain’s economy would grow by 0.5% next year.

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