No 10 insists UK economy is strong despite IMF warning it will fare worse than any other in developed world – including Russia
Downing Street has insisted that the UK’s economy is strong despite the International Monetary Fund’s warning that Britain’s economy will go into reverse this year and will fare worse than all other advanced nations.
In its latest World Economic Outlook update, the IMF downgraded its UK gross domestic product (GDP) forecast once again, predicting a contraction of 0.6% against the 0.3% growth pencilled in last October.
The outlook for the year ahead puts the UK far behind its counterparts in the G7 group of advanced nations.
IMF’s dire outlook for UK economy is ‘wrong’ – politics latest
The UK is also expected to be the only country – across advanced and emerging economies – to suffer a year of declining GDP.
But the PM’s official spokesman told reporters the IMF itself “said that UK economic policy is now on the right track”.
The spokesman added that the UK outperformed many forecasts last year and was “predicted to grow faster than Germany and Japan over the coming years”.
But shadow chancellor Rachel Reeves said the government needs to do “so much more” to fulfil the potential of the UK economy.
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Asking an urgent question on the IMF’s economic outlook update in the Commons, Ms Reeves said: “Britain has huge potential but 13 years of Tory failure has been a drag anchor on prosperity.
“Today’s IMF assessment holds a mirror up to the wasted opportunities and it is not a pretty sight.
“The UK is the only major economy forecast to shrink this year. Weaker growth compared to our competitors for both of the next two years.
“The world upgraded, Britain downgraded. Growth even worse than sanctions-hit Russia.”
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‘It’s bad news for UK economy’
Taking aim at Chancellor Jeremy Hunt who was not in attendance, she added: “If the chancellor had ideas, answers or courage, he would be here today. But he is not.”
Ms Reeves continued: “The question people are now asking is this: are me and my family better off after 13 years of Tory government? The answer is no. And as the IMF show today, it doesn’t have to be this way.”
Transport minister Richard Holden said IMF forecasts were wrong ‘in the last couple of years’
Earlier on Monday, transport minister Richard Holden disputed the IMF’s forecast.
Asked if the IMF is wrong, Mr Holden told Sky News: “I think so.”
He added that the IMF has got its forecasts wrong “in the last couple of years”, and that he thinks “Britain can outperform its prediction like it has done for the last two years”.
The Conservative minister told Kay Burley that the UK economy has “grown faster than Germany since 2016” and “grown faster than France, Italy, and Japan since 2010”.
Mr Holden also said the body’s report “praised” the actions Chancellor Jeremy Hunt and Prime Minister Rishi Sunak have taken to try to stabilise the country’s finances.
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Former cabinet minister Jacob Rees-Mogg agreed with Mr Holden, telling Sky News his earlier remarks about the IMF were “sheer genius”.
“Well, first of all, this is a forecast,” Mr Rees-Mogg said.
“And when was the IMF forecast last right? So you’ve got to understand that forecasts are not historic fact.”
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Responding to the IMF’s latest economic outlook earlier on Tuesday, the chancellor said “these figures confirm we are not immune to the pressures hitting nearly all advanced economies”.
“Short-term challenges should not obscure our long-term prospects – the UK outperformed many forecasts last year, and if we stick to our plan to halve inflation, the UK is still predicted to grow faster than Germany and Japan over the coming years,” he said in a statement.
Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.
It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.
He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.
Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Ms Siddiq insists she has “done nothing wrong”.
Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.
Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.
Tory leader Kemi Badenoch has called on Sir Keir to sack the minister
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As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.
She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.
On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.
“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”
Police in Aberdeen have widened the search area for two sisters who disappeared four days ago in the city.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV on Market Street after leaving their home on Tuesday at around 2.12am.
The sisters – who are part of a set of triplets and originally from Hungary – crossed the Victoria Bridge to the Torry area and turned right on to a footpath next to the River Dee.
Eliza and Henrietta Huszti were last seen on CCTV in Market Street. Pic: Police Scotland/PA
They headed in the direction of Aberdeen Boat Club but officers said there is no evidence to suggest the missing women left the immediate area.
Specialist search teams, police dogs and a marine unit have been trying to trace the pair.
The sisters crossed Victoria Bridge before walking along a footpath next to the River Dee
The pair were heading in the direction of Aberdeen Boat Club on the south side of the River Dee
Further searches are being carried out towards the Port of Aberdeen’s South Harbour and Duthie Park.
Police Scotland said it is liaising with authorities in Hungary to support the relatives of the two sisters.
Chief Inspector Darren Bruce said: “Eliza and Henrietta’s family are understandably extremely worried about them and we are working tirelessly to find them.
“We are seriously concerned about them and have significant resources dedicated to the inquiry.”
The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Officers have requested businesses in and around the South Esplanade and Menzies Road area to review their CCTV footage for the early morning of Tuesday 7 January.
Police added they are keen to hear from anyone with dashcam footage from that time.
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