Nothing makes you feel more like a de-developing nation than being reprimanded by the International Monetary Fund (IMF). Rachel Reeves can take solace in trace amounts from the fact that the IMF advised her only to “stay the course” on spending limits – whatever energy or inflation crises are down the line, she shouldn’t cave to demands for government support. Basically, “when the facts change, do not change your mind” – the opposite of the economists’ classic, but then, haven’t we all had enough of classics?
It’s a milder rebuke than the one delivered to the then chancellor, Kwasi Kwarteng, in 2022, about which the BBC’s economics editor, Faisal Islam, admitted “even I was taken aback”, creating a ripple effect: other, lesser economy-watchers were taken aback at the abackness that had taken the unflappable Islam. But it still has a sting in its tail, enjoining Reeves to keep her focus on “controlling the rising welfare bill, as well as delivering further efficiency measures in public services, while protecting the most vulnerable”.
