UK should consider tax cuts, says IMF
The UK Government should consider cutting VAT or national insurance and increasing state investment in infrastructure to boost growth if the economic situation worsens, according to the International Monetary Fund.
The Bank of England should act now to inject some vigour into a “flat” economy by printing money in a new round of quantitative easing or even cutting the 0.5% base interest rate below its current historic low.
In an annual report on the state of the UK economy, the IMF said deficit reduction was “essential” in the medium term and paid tribute to the “substantial progress” towards a sustainable budget delivered by the coalition government’s austerity programme.
For the full story, pick up a copy of today’s Press and Journal or read our digital edition now.