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| UK's mini-budget U-turn welcomed by IMF | UK's mini-budget U-turn welcomed by IMF |
| (36 minutes later) | |
| The UK government's U-turn on tax cuts will help tackle soaring inflation, the International Monetary Fund has said. | The UK government's U-turn on tax cuts will help tackle soaring inflation, the International Monetary Fund has said. |
| In a statement, the IMF said the changes will help "better align fiscal and monetary policy in the fight against inflation". | In a statement, the IMF said the changes will help "better align fiscal and monetary policy in the fight against inflation". |
| The statement comes after the body had openly criticised the UK government in September over its plan for tax cuts. | The statement comes after the body had openly criticised the UK government in September over its plan for tax cuts. |
| Last month, the IMF said the tax cut plan was likely to increase inequality and add to pressures pushing up prices. | Last month, the IMF said the tax cut plan was likely to increase inequality and add to pressures pushing up prices. |
| In an unusual move, it openly criticised the UK government's tax cuts plan, and then warned that rising prices would be worse in the UK. | In an unusual move, it openly criticised the UK government's tax cuts plan, and then warned that rising prices would be worse in the UK. |
| The IMF had said the policy worked at cross-purposes with measures designed to slow how quickly the cost of living was rising. | The IMF had said the policy worked at cross-purposes with measures designed to slow how quickly the cost of living was rising. |
| After market turmoil following the mini-budget, the government made a U-turn, reversing a pledge to cut the top rate of income tax. | After market turmoil following the mini-budget, the government made a U-turn, reversing a pledge to cut the top rate of income tax. |
| Then on Monday the new Chancellor Jeremy Hunt made a dramatic U-turn on the government tax cuts plans, undoing swathes of policies from former Chancellor Kwasi Kwarteng and Prime Minister Liz Truss. | Then on Monday the new Chancellor Jeremy Hunt made a dramatic U-turn on the government tax cuts plans, undoing swathes of policies from former Chancellor Kwasi Kwarteng and Prime Minister Liz Truss. |
| The pound rose and the cost of government borrowing fell. | The pound rose and the cost of government borrowing fell. |
| Jeremy Hunt scraps almost all mini-budget as Liz Truss battles to remain PM | Jeremy Hunt scraps almost all mini-budget as Liz Truss battles to remain PM |
| On Tuesday the IMF welcomed the U-turns, saying: "The UK authorities' recent policy announcements signal commitment to fiscal discipline and help better align fiscal and monetary policy in the fight against inflation." | On Tuesday the IMF welcomed the U-turns, saying: "The UK authorities' recent policy announcements signal commitment to fiscal discipline and help better align fiscal and monetary policy in the fight against inflation." |
| The IMF tries to stabilise the global economy and one of its main roles is to act as an early economic warning system. | The IMF tries to stabilise the global economy and one of its main roles is to act as an early economic warning system. |
| It had urged the government to reconsider its tax plans, saying they would be likely to increase inequality. | It had urged the government to reconsider its tax plans, saying they would be likely to increase inequality. |
| In addition, it had warned that the cuts could speed up the pace of price rises, which the Bank of England is trying to bring down. |