IMF warn Gordon Brown against further tax rises.
Gordon Brown has finally been warned by the International Monetary Fund that the soaring burden of tax under Labour risks damaging the economy and extravagant public spending should be reined in.
Now, i'm not an economist, but even I could have told them that years ago.
However, to make matter worse, the IMF have also sounded a warning that another interest rise may well be needed early next year.
The IMF's anxieties has mirrored those on the Bank of England's Monetary Policy Committee, whose biggest worry is that present high levels of inflation, and expectations of high rates in future, will stoke up wage demands in the new year pay round.
So, if inflation is set to rise further, the tax burden unlikely to ever come down while Labour are running the country, and interest rates about to rise again in the new year, just how are we better off under Brown? Simple answer we're not.
2 comments:
The Times article seems to suggest that the IMF are pretty upbeat about Brown's prospects for maintaining growth and stability.
You're post, while not factually false, seems to spin the tone of the article 180 degrees
Not really, the IMF have said that he should not raise taxes, and public spending should be reined in.
As for growth, I don't believe anything that Gordon Brown says as he has failed to get ANY of his growth forecats correct since he became chancellor.
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