Reeves promises ‘reset for our economy’ as she prepares for first Budget

Rachel Reeves has promised her first Budget will be an economic “reset” for the UK.

The Chancellor said her statement on October 30 will invest in the “foundations of future growth”.

Ms Reeves was speaking ahead of talks with finance ministers from around the world in Washington at the International Monetary Fund (IMF) annual meeting.

Ms Reeves was handed a pre-Budget boost by the IMF, which on Tuesday upgraded its 2024 growth forecast for the UK economy.

It said UK gross domestic product (GDP) is due to grow by 1.1%, a significant upgrade after predicting 0.7% growth in July.

But the IMF’s chief economist Pierre-Olivier Gourinchas said countries should tread a “narrow path in terms of fiscal consolidation”, after being asked about reports the Chancellor is considering changes to fiscal rules which could allow the state to borrow more.

He added that countries should not do “too much too quickly” in relation to tax and spending decisions in order to maintain stability.

She will also press for all G20 countries to meet G20 best practice on debt transparency and move swiftly to implement support for countries facing pressing liquidity problems.