'Prudence' Brown Praised By IMF Over Tax Policies

by Robert Lee, Tax-News.com, London

17 December 2001

In its annual report on the UK, the International Monetary Fund praised the country's performance in the midst of a global economic downturn, and gave the British economy a clean bill of health.

The IMF called the United Kingdom's performance 'remarkable', and praised Chancellor Gordon Brown's prudent policies on taxation and the Bank of England's independent control over interest rates. It also said that his pre-budget reports - now notorious for leaving UK businesses and tax experts alike scratching their heads in bewilderment - represent 'an international standard of best practice'.

The government also won praise for its strenuous crackdown on money laundering in the City in the wake of the September 11th terrorist attacks. However, in one of the few criticisms made in the report, the International Monetary Fund sounded a note of caution over Labour's plans to increase government borrowing by £10 billion ($14 billion) in order to compensate for lower than anticipated tax revenue and the Chancellor's ambitious spending plans.

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