Latest Public Sector News

22.05.13

Austerity a ‘drag’ on economy – IMF

The UK economy is still a long way from “a strong and sustainable recovery”, the International Monetary Fund (IMF) has warned.

Austerity measures could be offset by more infrastructure spending, it suggested.

Speaking at a press conference in London, deputy managing director, David Lipton, said: “It would be, in our view, useful for the economy for infrastructure and other measures to be brought forward to reduce the drag of austerity measures... and provide more support for the economy.”

However, the recommendations would not involve more spending over the medium-term.

“The recommendations we have made today are fiscally neutral. We're suggesting that within the multi-year medium-term framework that the government has laid out that it should advance infrastructure spending to provide more support for the economy.

“But that said... one has to evaluate the impact on policies on the economy as you go so whether the present medium-term framework turns out to be an appropriate one when measured next year or the year after remains to be seen.”

Chancellor George Osborne said the UK would not “duck its economic challenges”.

But shadow chancellor Ed Balls said: “Behind the diplomatic language, this is the call for action on jobs and growth that the IMF has been threatening to deliver for many months and a stark warning of the consequences if the chancellor refuses to listen.

“The IMF is clear that we are a long way from the strong and sustained recovery we need, and backs the warnings we have made for three years that the Government's plans are a drag on growth and risk doing long-term damage.”

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com

Comments

There are no comments. Why not be the first?

Add your comment

 

public sector executive tv

more videos >

last word

National policies won’t fix local problems

National policies won’t fix local problems

Andrew Carter, the recently-appointed chief executive of Centre for Cities, argues that the new government will only succeed if it focuses on implementing policies that are adaptable to place-based more > more last word articles >

public sector focus

View all News

comment

Innovation in commissioning services

26/06/2017Innovation in commissioning services

Malcolm Harbour CBE, who wrote Parliament’s first report on innovatio... more >
Engaging the voluntary sector: how to make devolution a success

26/06/2017Engaging the voluntary sector: how to make devolution a success

Paul Winyard, senior policy officer at the National Council for Voluntary O... more >

interviews

HSCN: The enabler for a more joined-up public sector

26/06/2017HSCN: The enabler for a more joined-up public sector

Mark Hall, Chief Assurance Officer at Redcentric, discusses NHS Digital&rsq... more >

most read

the raven's daily blog

Councillors celebrated in Queen’s Birthday Honours list 2017

19/06/2017Councillors celebrated in Queen’s Birthday Honours list 2017

A number of local government leaders and figures have been named in the Queen’s 2017 Birthday Honours list. The list recognises the achievements of people across a ... more >
read more blog posts from 'the raven' >

editor's comment

15/06/2017Challenges remain

As PSE went to press, we were days away from finding out which political party or parties would be leading the country following Theresa May’s decision to call a snap general election for 8 June.  Whoever enters the door at No.10, irrelevant of their political colour, is faced with serious challenges, from social care to the NHS, housing to the economy, and, of course, the all-consuming and imminent Brexit negotiations which will have ramifications for generations to... read more >