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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”.

Prime Minister Rishi Sunak speaks during a Q&A at Teesside University in Darlington

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.”

Richard Holden
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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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Truss grilled over dire economic forecast

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.

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Ballymena protests: It is hard to see where the violence will end – and it could go on for weeks

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Ballymena protests: It is hard to see where the violence will end - and it could go on for weeks

The ugly, violent side of this Northern Ireland town was on full display once again last night.

Angry mobs went on a rampage through the streets of Ballymena for a second evening as riot police from across this country were drafted in to push back against an escalating ambush.

Hours of blaring sirens were punctured by the relentless sound of bricks and petrol bombs landing on police vehicles.

A person stands in front of a fire in a Ballymena street. Pic: PA
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Pic: PA

The main roads became a war zone with fires in the middle of the carriageway, cars ablaze and the crunch of broken glass at our feet as we walked the streets.

Masked and hooded young men were blasted with the water cannon as tensions boiled over in a strained, fragile community.

This has been rumbling for days and began when a vigil, held for a girl who was the victim of an alleged sex attack was, according to police, hijacked by anti-immigration mobs.

Authorities say “racist thugs” used the incident to plot their attacks on foreign people living locally.

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A vehicle on fire near Clonavon Terrace, Ballymena. Pic: PA
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Pic: PA

One family with three children were said to have hidden in their attic on Monday night as yobs ransacked their home.

Another man told me how he had to drag his 84-year-old mum from her home of 40 years “kicking and screaming” as it was simply not safe anymore.

“I’ve never seen anything like this,” he said.

Police officers are using a water cannon to disperse protesters engaged in serious disorder. Pic: PA
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Pic: PA

On Tuesday, many displayed posters on their windows in a desperate bid to ensure their house did not become a target. Others draped union jack flags on full display.

“British residents,” one piece of paper stated.

There is a feeling among the crowds here in Ballymena that the police branding them racists has escalated this row further.

Police officers use a water cannon as the protest enters a second night. Pic: PA
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Pic: PA

In a horrifying twist, we got word in the middle of the night that another house had been firebombed.

When we arrived at the scene, it was a charred shell. The property was completely gutted.

Neighbours described how several hundred “protesters” had gathered outside before hounding the foreign occupants out. One woman was pacing up and down, crying in distress at what happened.

PSNI vehicles form a barricade at Clonavon Terrace, Ballymena. Pic: PA
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Pic: PA

Another man, who lived a few doors, down hinted that this community had “had enough” of “people moving in”. He lambasted the media and refused to engage any further.

As I drove out of Ballymena at 1.30am I witnessed other families dragging suitcases full of their belongings through the streets. They were flanked by riot police, armed with shields, who helped them to safety in a late-night escape.

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Aftermath of ‘racist thuggery’ in Ballymena

It is hard to see where this ends.

The talk here is that this unrest is only just beginning.

It could go on for weeks – and already there are questions about the pressure that will pile on police who will be desperate to de-escalate this mess.

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Ballymena protest: Fireworks, petrol bombs and glass bottles thrown at riot police as serious disorder deepens

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Ballymena protest: Fireworks, petrol bombs and glass bottles thrown at riot police as serious disorder deepens

Fireworks, petrol bombs and glass bottles have been thrown at riot police as unrest in Ballymena continued for a second night.

Water cannon and plastic baton rounds were used to disperse hundreds of protesters in the Co Antrim town – with officers wearing armour and carrying shields.

Several blazes were reported in the worst-affected areas, with cars set alight and house windows smashed. Police sirens continued to blare throughout the town past midnight.

A protester throws a bin into a fire burning in the street. Pic: PA
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Pic: PA

A person stands in front of a fire in a Ballymena street. Pic: PA
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Pic: PA

Clothes belonging to at least one protester caught fire during the disorder.

Some properties displayed signs about the nationality of the residents inside – including one saying “British household”.

Sky correspondent Connor Gillies, who is in Ballymena, says some families have had to barricade themselves into the attics of their homes as the clashes worsen.

“The talk here in this town is that it could go on for weeks yet,” he added.

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The violent disorder started on Monday, following a peaceful protest supporting the family of a girl who was allegedly sexually assaulted in the area over the weekend.

Police officers use a water cannon as the protest enters a second night. Pic: PA
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Pic: PA

People watch as a vehicle burns during the protest in Ballymena. Pic: PA
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Pic: PA

Two 14-year-old boys were charged with attempted rape and were remanded in custody when they appeared at Coleraine Magistrates’ Court on Monday. The charges were read to them by a Romanian interpreter.

The Police Service of Northern Ireland said on Tuesday that it had made a third arrest in connection with the alleged rape, and is continuing to urge anyone with information to come forward.

The 28-year-old man has since been unconditionally released from custody following questioning.

PSNI Assistant Chief Constable Ryan Henderson described the scenes in Ballymena as “racist thuggery” and said the force was “actively working to identify those responsible” for the “racially motivated disorder”.

Mr Henderson said people from ethnic minorities have “felt fear” – and there will be a significant policing operation in the town in the coming days to reassure the community.

At least 15 police officers were injured on Monday.

The protest has entered its second night, with fires burning on the streets of Ballymena. Pic: PA
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Pic: PA

PSNI vehicles form a barricade at Clonavon Terrace, Ballymena. Pic: PA
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Pic: PA

A 29-year-old man was arrested during the unrest on Monday night and charged with riotous and disorderly behaviour, attempted criminal damage and resisting police.

Mr Henderson said other arrests are expected following the examination of video footage.

Local MP Jim Allister said tensions over immigration had been building for some time.

Mr Henderson said there was no intelligence suggesting the disorder was orchestrated, but added that some at the protest were “clearly intent on violence” and had prepared petrol bombs and masonry to use as missiles.

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Smoke is billowing into the sky during the protest. Pic: PA
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Pic: PA

Police officers are using a water cannon to disperse protesters engaged in serious disorder. Pic: PA
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Pic: PA

A vehicle on fire near Clonavon Terrace, Ballymena. Pic: PA
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Pic: PA

Downing Street said there was “no justification” for the violence.

Sir Keir Starmer’s spokesman said: “The disorder we saw in Ballymena is very concerning.”

He added: “Obviously, the reports of sexual assault in the area are extremely distressing, but there is no justification for attacks on police officers while they continue to protect local communities.

“PSNI and the justice system must be allowed to carry out their jobs and our thoughts are with the victims of the assault as well as the police officers who were injured.”

Hilary Benn, secretary of state for Northern Ireland, said on X that the “terrible scenes of civil disorder” seen on Monday and Tuesday night “have no place in Northern Ireland”.

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Chancellor Rachel Reeves to invest ‘billions’ at spending review as voters ‘yet to feel’ benefits of Labour government

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Chancellor Rachel Reeves to invest 'billions' at spending review as voters 'yet to feel' benefits of Labour government

Chancellor Rachel Reeves will set out plans in the spending review on Wednesday to invest billions of pounds across Britain, as she admits “too many people” are “yet to feel” the benefits of the government’s work so far.

In a statement in the House of Commons, the chancellor will vow to spend vast sums of money across the country to “ensure that renewal is felt in people’s everyday lives, their jobs, their communities”.

As well as confirming the budgets for each government department for the next three years, the Treasury says Ms Reeves will announce plans to invest billions in security, health, and the economy more broadly.

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The chancellor will set out “reforms that will guarantee towns and cities outside London and the South East can benefit from new investment”, the department said.

Chancellor Rachel Reeves will set out the government's spending plans for the next three years. Pic: Reuters
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Chancellor Rachel Reeves will set out the government’s spending plans for the next three years. Pic: Reuters

Ms Reeves is expected to say: “This government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.

“This government’s task – my task – and the purpose of this spending review – is to change that. To ensure that renewal is felt in people’s everyday lives, their jobs, their communities. So that people can see a doctor when they need one. Know that they are secure at work. And feel safe on their local high street.

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“The priorities in this spending review are the priorities of working people. To invest in our country’s security, health and economy so working people all over our country are better off.”

Watch live coverage of the spending review on Sky News from 12pm

Ms Reeves will also formally confirm “the biggest ever local transport infrastructure investment in England’s city regions”, worth £15.6bn, as well as £86bn to “boost science and technology”, including by building the Sizewell C nuclear power station.

She will also announce the extension of the £3 cap on bus fares, Sky News understands. The cap – which Labour lifted from £2 – was due to expire at the end of this year.

And £39bn for a new Affordable Homes Programme over the next 10 years is also expected to be announced, as the government seeks to ramp up housebuilding to hit its manifesto pledge of building 1.5 million new homes by the end of this parliament.

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What to expect from the spending review

The chancellor will argue: “The choices in this spending review are possible only because of the stability I have introduced and the choices I took in the autumn.”

One of those choices included cutting the winter fuel allowance for almost all pensioners – a decision the government has now U-turned on, at a cost of £1.25bn. However, she is not expected to explain where that money will come from until the budget this autumn.

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Ms Reeves will tell MPs: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.

“These are my choices. These are this government’s choices. These are the British people’s choices.”

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‘You are everyone’s worst enemy’

But shadow chancellor Sir Mel Stride said this will be “the ‘spend today, tax tomorrow’ spending review”, arguing that the government is “spending money it doesn’t have, with no credible plan to pay for it”.

He said in a statement: “Rachel Reeves talks about ‘hard choices’ – but her real choice has been to take the easy road. Spend more, borrow more, and cross her fingers. This spending review won’t be a plan for the future – it will be a dangerous gamble with Britain’s economic stability.”

He went on: “Today, we’ll hear slogans, spin and self-congratulation – but not the truth. Don’t be fooled. Behind the spin lies a dangerous economic gamble that risks the country’s financial future.”

Watch live coverage of the spending review on Sky News from 12pm

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