Kwasi Kwarteng is under pressure to U-turn on his tax plans after the International Monetary Fund issued an extraordinary statement urging him to 'reevaluate'
In an extraordinary statement, the IMF said it was "closely monitoring" developments and urged the Chancellor to "reevaluate" his plans after a raft of tax cuts and increased borrowing spooked the markets.
She said waiting until November for the next financial statement was "not an option", and "alarm bells" should be ringing and forcing the government to "act now". But the IMF said in a statement: "We understand that the sizeable fiscal package announced aims at helping families and businesses deal with the energy shock and at boosting growth via tax cuts and supply measures.
"The November 23 budget will present an early opportunity for the UK Government to consider ways to provide support that is more targeted and reevaluate the tax measures, especially those that benefit high income earners," the IMF said."Families will be concerned about what market movements in recent days mean for them.
"First the Bank of England had to step in to reassure markets. Now, this statement from the IMF should set alarm bells ringing in government and make it clear that they need to act now."The Bank of England signalled it was ready to ramp up interest rates to shore up the pound and guard against increased inflation.
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