IMF praise puts UK borrowing plans in focus ahead of Budget

IMF managing director Kristalina Georgieva said the UK had acted decisively to reduce debt and the deficit, giving it “a bit of a better growth prospect” in that respect, according to BBC economics editor Faisal Islam. Silvana Tenreyro, described in his report as the IMF’s chief economist, also said UK borrowing reductions “stand out”. [1]

The IMF’s twice-yearly assessment also presents the UK as the only G7 country with a serious plan to reduce annual borrowing over the next few years, by an amount equivalent to nearly 4% of the economy, Islam reports. That figure concerns planned reductions in annual borrowing, not a fall in the total debt already achieved. [1]

With the Budget due in about a fortnight, Islam suggests there could be a modest reduction in the government’s fiscal “headroom” — its margin for error in meeting debt rules. The Budget measures have yet to be presented, and he cautions that forecasts depend on the plans behind them. [1]