IMF's boost to John Healey ahead of Budget but price warning for households
Chancellor John Healey will use the Budget to provide "breathing space" for the hardest hit households while seeking to reassure bond markets (Image: Ian Vogler / Daily Mirror)
TL;DR
- IMF now forecasts 1.3% UK GDP growth this year, up from 1%, but slows to 1.2% next year.
- UK unemployment is projected to be 5.3% this year, down from a previous prediction of 5.6%.
- UK inflation is expected to average 3.3% this year, slightly higher than previously forecast, and slow to 2.8% next year.
- IMF warns governments against unfunded giveaways and advises using cost of living help "sparingly".
- PM Andy Burnham has temporarily removed 5% VAT from domestic electricity bills, offering a small saving.
- Potential options for the Chancellor include extending the VAT cut or widening eligibility for the Warm Home Discount.
- Grocery price inflation rose to 2.5% in the four weeks to October 4.
- Chancellor John Healey acknowledged the impact of Middle East and European conflicts but highlighted the UK economy's resilience.
- IMF economic counsellor Silvana Tenreyro advised the UK to "stay the course".
- Shadow chancellor Andrew Griffith urged tackling drilling and welfare spending, warning against tax rises.