UK economic growth forecast upgraded by IMF

The International Monetary Fund (IMF) has upgraded the United Kingdom's growth forecast for this year by 0.5 percentage points to 1.3 per cent, marking one of the largest upgrades within the G7. The IMF also projects the UK deficit will shrink to 1.4 per cent of GDP by 2031.

Despite these macroeconomic improvements, the Resolution Foundation notes that living standards remain a concern, as GDP per capita is projected to grow by only 0.7 per cent this year. Additionally, Chancellor John Healey has reportedly rejected proposals to equalize Capital Gains Tax with Income Tax.

The Resolution Foundation is also reviewing the Personal Independence Payment (PIP) system to determine if it effectively supports disabled people, alongside analyzing the impact of wealth taxes and global economic forecasts.