Fri, 25 Jul 2025

Fri, 25 Jul 2025 Government considering having borrowing assessed once a year

The move comes after the IMF suggested the change would reduce pressure for "overly-frequent changes to policy".

* The UK government may consider reducing the number of public finances assessments from twice a year to once, following a suggestion from the IMF.
* This change aims to avoid "overly frequent" policy switches to meet borrowing rules and give the government more room for manoeuvre.
* Fiscal rules, self-imposed by wealthy nations, are designed to maintain credibility with financial markets.
* The IMF praised the UK's economic performance and reforms, but warned that risks must be carefully managed due to a small buffer against shocks.
* The watchdog suggested considering measures such as cutting the state pension triple lock, widening VAT, means-testing benefits, and co-payments for NHS users.
* If implemented, this could lead to more tax rises in the autumn Budget.
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