The IMF said the UK must be candid that financing planned defence increases will require cuts to other government departments rather than sustained borrowing. London plans to raise defence spending to 3% of GDP by 2030, a move expected to require about £11 bln a year; the government has yet to explain how it will fund the rise ahead of next year’s spending review. IMF officials at their annual meeting in Bangkok warned that high debt levels make further borrowing unsustainable and said savings s

The IMF said the UK must be candid that financing planned defence increases will require cuts to other government departments rather than sustained borrowing. London plans to raise defence spending to 3% of GDP by 2030, a move expected to require about £11 bln a year; the government has yet to explain how it will fund the rise ahead of next year’s spending review. IMF officials at their annual meeting in Bangkok warned that high debt levels make further borrowing unsustainable and said savings should come from other budgets, while tax increases could have adverse economic effects.