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IMF tells Healey to cut welfare and pensions, not tax banks, ahead of October Budget

IMF tells Healey to cut welfare and pensions, not tax banks, ahead of October Budget

The IMF has directly warned Chancellor John Healey that taxes in Britain are already at a historically high 40% of GDP, and that raising them further on banks makes poor economic sense. IMF economist Helge Berger, speaking in Bangkok, urged Healey to cut welfare spending and reform the pensions triple lock instead of hiking bank levies. Industry chiefs warn a bank surcharge rise could cost the economy £20bn over the next decade and push up mortgage rates.

Banks have warned higher taxes could force them to throttle lending, cut investment, and shift London operations overseas.

Healey has been accused of 'speaking out of both sides of his mouth' after praising banks as 'the jewel in the crown of the British economy'.

MoreThe IndependentCut public spending rather than raising taxes on banks, IMF warns HealeyDaily MailCut benefits instead of taxing banks, IMF tells HealeyLBCIMF warns John Healey to consider spending cuts rather than raising bank taxesThe GuardianTarget pensions or welfare, not banks, IMF tells John HealeyThe TelegraphIMF: Healey should cut welfare spending instead of taxing banks
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