The International Monetary Fund (IMF) has warned that Rachel Reeves should cut government spending if she wants to reduce debt indicating that relying on tax rises alone would be undesirable. National debt currently stands at 100% of GDP in Britain, and the IMF says the UK, alongside the US, France and Italy are among the countries where debt is on track to keep rising until the end of the decade. This comes as the Fund warned on Tuesday that global debt was expected to hit $100trn (£76trn) for the first time this year. Separate analysis by the IMF warned that countries with high debt levels faced a higher risk of investors reacting negatively to a spending spree, leading to a sharp increase in sovereign bond yields.
IMF: Reeves must slash spending to get debt down
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