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Rebellious MPs urge ministers to ‘prove IMF wrong’ after economic watchdog predicts grim future

Rebellious MPs urge ministers to ‘prove IMF wrong’ after economic watchdog predicted grim future for UK

Ministers were urged yesterday to “prove the IMF wrong” by cutting taxes and going for growth after a grim forecast from the global economic watchdog.

The International Monetary Fund predicted that the UK would be the only advanced economy in the G7 to slip into recession this year, with gross domestic product shrinking by 0.6 percent.

Separate data showing a slump in home buyers taking out mortgages and an increase in corporate bankruptcies added to the gloom.

Tory MP Sir John Redwood said: ‘The Treasury must prove that the IMF’s predictions for a weak British economy are wrong. For that it has to go for growth and lower some taxes.’

The IMF now forecasts UK GDP to shrink by 0.6% in 2023 – previously expected to grow by 0.3%

Tory Mp Sir John Redwood (Pictured) Said: 'The Treasury Must Prove That The Imf'S Predictions For A Weak Uk Economy Are Wrong.  For That It Has To Go For Growth And Lower Some Taxes.'

Tory MP Sir John Redwood (pictured) said: ‘The Treasury must prove that the IMF’s predictions for a weak UK economy are wrong. For that it has to go for growth and lower some taxes.’

Colleague Tory Craig Mackinlay said: ‘With these doomsayers, I’m afraid we’re going to talk ourselves into a recession.

“People think ‘I’d better retract my horns’ and if we do we’ll have a goddamn major recession on our hands.”

The IMF outlook for the UK has been revised sharply downwards due to higher taxes and lower spending, rising interest rates and skyrocketing energy bills.

The watchdog said household budgets “remain at odds” as it predicted the UK to slip into recession, while even Russia would see growth despite massive sanctions.

The report put further pressure on Chancellor Jeremy Hunt to implement tax cuts in the March budget.

John O’Connell, of the TaxPayers’ Alliance, said: “Tax cuts must be accompanied by spending restraint.”

He said the chancellor should prevent companies from “tightening the noose.”

The IMF’s forecasts will be treated with skepticism by some as the watchdog has a reputation for being overly pessimistic about the UK.

It has improved its outlook for Germany and Italy, even as official figures showed their economies contracted in the fourth quarter, pushing them to the brink of recession.

New data showing mortgage approvals for UK home purchases fell to 35,600 in December – the lowest number since May 2020 – has not improved the outlook.

Colleague Tory Craig Mackinlay (Pictured) Said: 'With These Doomsayers, I'M Afraid We'Re Going To Talk Ourselves Into A Recession.  People Think 'I'D Better Retract My Horns' And If We Do We'Ll Have A Goddamn Major Recession On Our Hands'

Colleague Tory Craig Mackinlay (pictured) said: ‘With these doomsayers, I’m afraid we’re going to talk ourselves into a recession. People think ‘I’d better retract my horns’ and if we do we’ll have a goddamn major recession on our hands’

The Uk Performed Relatively Well In 2022, But Is Expected To Go Into The Red This Year As The Cost Of Living Crisis Bites

The UK performed relatively well in 2022, but is expected to go into the red this year as the cost of living crisis bites

The Report Put Further Pressure On Chancellor Jeremy Hunt (Pictured) To Implement Tax Cuts In The March Budget

The report put further pressure on Chancellor Jeremy Hunt (pictured) to implement tax cuts in the March budget

Excluding the pandemic, the numbers were the weakest since the financial crash from 2007 to 2009.

Meanwhile, former Prime Minister Liz Truss has reportedly suggested to US politicians that she doesn’t trust Rishi Sunak to lift the UK out of economic ‘stagnation’.

The Politico website has revealed that she toured Washington in December to garner support for her tax cut agenda and ideas for a comeback.

Politics reported that she “indicated that she did not trust her successor, Rishi Sunak, a more technocratic Tory, to get the job done.”

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Jacky

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