IMF Economic Outlook

Emma Hardy Excerpts

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

My hon. Friend makes a brilliant point and reminds us that not only did the IMF talk this morning about our strong performance in 2022, but at the autumn statement it welcomed those measures and recognised that a balance must be struck between fiscal consolidation and supporting the most vulnerable. The best example I can give is that from April, far from support with high energy costs being withdrawn, there will be a new £900 payment for families on benefits. That shows we are getting the balance right between the fiscal discipline necessary to work with the Bank of England to reduce inflation and ensuring that families are supported through these challenging times.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Today the Government’s response to the IMF forecast has been simply to say that forecast is wrong. If the Government will not look at the forecast, let us look at the facts. The UK is the only G7 economy smaller now than it was at the start of the pandemic, and growth has been lower under the Conservatives than it was under the last Labour Government. Can the Minister tell us whether the Government have any respect for our international economic institutions?

[James Cartlidge]

I did not question the IMF forecast—that is not correct. I simply quoted what the IMF said, that cumulative growth over the 2022 to 2024 period is predicted to be higher than in Germany and Japan and at a similar rate to the US.