Speculation that the Truss government might move on to tax cuts to incentivise landlords appears wide of the mark.

There has been comments from some housing market observers last week that the absence of any stamp duty or tax benefits to landlords in Chancellor Kwasi Kwarteng’s mini-Budget might have been rectified in further tax changes later this year.

However, there seems little hope of further tax cuts in the near future following not just the slide in the value of the pound on global markets, but also especially severe criticism of Kwarteng’s measures by the International Monetary Fund.

It has openly criticised the UK government over its tax cut plans and it warns they’re likely to fuel inflation.

This is considered to be an unusually outspoken statement for the IMF, which usually works with free market governments to stabilise the global economy. 

The IMF is warning that the proposals by the government are likely to increase inequality and speed up the rate of price rises.  The IMF says the government has a chance to “re-evaluate” tax measures – especially those benefitting high earners – when it publishes its more complete fiscal plan in November. 

The full IMF statement says:

“We are closely monitoring recent economic developments in the UK and are engaged with the authorities.

“We understand that the sizeable fiscal package announced aims at helping families and businesses deal with the energy shock and at boosting growth via tax cuts and supply measures.

“However, given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy.

“Furthermore, the nature of the UK measures will likely increase inequality.

“The November 23 budget will present an early opportunity for the UK government to consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high income earners.”