Leading Tories are calling on Rishi Sunak to lay out plans for economic growth after the IMF predicts the UK will be the only major economy to contract this year.
This was stated by the leaders of the new group of conservative growth. I that the prime minister should initiate “urgent” civil service reforms and targeted tax cuts to stimulate the economy.
Among them are demands to resolve the doctor’s retirement trap, known as the “physician tax”, which is causing many top doctors to leave the profession, and to rethink child care facilities for “quick start” growth.
The requirements follow the IMF’s forecast that the UK’s GDP will contract by 0.6% over the course of this year, making it the only G7 country to fall into recession before returning to growth in 2024.
This compares with a 1.2 percent increase in Canada, 1 percent in the US and Japan, 0.9 percent in France, 0.1 percent in Italy and 0 percent in Germany.
According to IMF forecasts, even the Russian economy, which is under severe sanctions, will grow by 1 percent this year.
In response to the figures, Conservative Growth Group (CGG) MPs called on Mr. Sunak to begin publishing the growth plan.
“A number of new forecasts show that we are focused on the growth of the UK economy and urgently need economic and civil service reforms,” said the CGG member.
“There are quick wins everywhere in government to cut bureaucracy and stimulate business. The elimination of the tax on doctors means that the NHS will have more experienced doctors, patients will be admitted and treated faster.[ing] People return to work later in life. And childcare reforms that allow parents to choose who will look after their children will allow people to get the jobs they want and make the most of their abilities.
“These are the targeted actions we need now to help Britain grow, improve the lives of families across the country and pay[ing] reduce our public debt in the coming years.”
The comments belong to a growing number of Liz Truss supporters who have raised concerns about the government’s plans to improve economic growth in the UK.
This was announced Tuesday morning by former Tory leader Ian Duncan Smith. I that the IMF figures highlight the need to focus on growth to reduce the country’s debt.
“Targeted tax cuts help. No wonder our economy is shrinking, we have one of the toughest fiscal tightening measures in place,” said Duncan Smith.
He called for less regulation, short-term fiscal stimulus, and lower government spending.
Chancellor Jeremy Hunt is set to answer Conservative MPs’ questions about his growth plans Tuesday night when he appears at the 1922 committee meeting.
Paul Johnson of the Institute for Financial Studies said the UK is facing exceptional circumstances that are exacerbating the economy’s problems, including a severe labor shortage, higher mortgage rates in the wake of Ms Truss’s doomed ‘mini budget’ and the fallout from Brexit.
Source: I News
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