Britain is facing “bad news” on the economy as fresh International Monetary Fund figures show the UK is set to have the highest inflation in the G7 over the next two years, primarily driven by soaring energy and utility bills.
The IMF expects inflation to average 3.4 per cent this year and 2.5 per cent in 2026, above every other major economy, before easing to two per cent by the end of next year.
GB News Political Correspondent Katherine Forster said the figures paint a “pretty gloomy” picture for households already struggling with the cost of living.
Speaking on Britain's News Channel, Katherine said: "This is bad news for Britain. The Government has said that growth is its number one mission.
Katherine Forster said that the figures are 'bad news for Britain'
|GB NEWS
"Growth projections are 1.3 per cent this year, which is up slightly from 1.2, but let’s face it, that’s not a lot.
"And for next year, it’s down to 1.3 again. So for a Government that says it’s all about growth, these are pretty anaemic numbers."
She added: “Even more worrying, perhaps, in terms of the cost of living crisis, is that inflation is going to be the highest in the G7, the group of the most advanced economies, both this year and next.
"It’s projected at 3.5 per cent this year and 2.5 per cent next.
"It’s currently at 3.8, and a lot of that is being driven by food and hospitality prices.
“Business leaders will say that’s been partly driven by choices the Government made in the last Budget in particular, the rise in National Insurance for employers and lowering the threshold at which they have to start paying it. That’s hit jobs at the bottom, really.
"Then, of course, we’ve also had the jobs figures earlier which show that unemployment is up. So it’s gloomy news.
"Rachel Reeves, the Chancellor, is saying that for too many people our economy feels stuck, and I think that’s absolutely correct.
"You could also say the British economy has been pretty stuck since the financial crisis. We’ve had precious little growth.
“She says she’s going to deal with it.
"The Shadow Chancellor, Mel Stride, has said these figures are grim reading, and that families are being squeezed from all sides. I think many people will feel like that. He also said the Government should be getting spending under control."
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Rachel Reeves is facing some difficult choices at the next Budget
| PAThe comments come as unemployment rises and both the Chancellor, Rachel Reeves, and her opposite number Mel Stride warn of economic stagnation.
With the Budget due on November 26 and around £30billion of tax rises expected, Katherine said the Government faces a near-impossible balancing act.
“They’re trying to get growth, there’s not much money around, and we’re paying over £100 billion a year just on interest,” she said. "It’s very difficult.”