IMF warns UK: keep budget in order or risk financial market rebellion

The International Monetary Fund (IMF) has warned UK Finance Minister Rachel Reeves that the country must maintain orderly public finances or risk a rebellion by investors in financial markets. There is significant criticism within the UK of Reeves' higher taxes on businesses and the population, but the IMF believes the plans are beneficial for the British economy.

If Reeves wants to make additional expenditures to help certain groups, the IMF advises that these costs must be covered by savings elsewhere or higher taxes. In the UK, there is pressure to reintroduce certain subsidies, such as the winter fuel allowance for the elderly, which Reeves has abolished, and the two-child limit on child benefits.

The government must 'stay on course and realize the planned deficit reduction in the next five years to stabilize net debt and reduce vulnerability to financial market pressure,' the IMF said.