KABUL: Economists in the UK are warning of an impending economic collapse due to rising inflation and burdensome tax increases.
The Telegraph reported on Saturday night, that several economists have raised alarms about the situation.
Jagjit Chadha, former head of the National Institute of Economic and Social Research, cautioned that the UK economy is at risk of “collapse,” suggesting that London may find itself seeking assistance from the International Monetary Fund (IMF) for large loans, similar to the situation in the 1970s.
Chadha stated, “We are in a perilous situation that could lead to borrowing from the IMF, as happened in 1976 when the UK was forced to seek financial help from this global institution.”
Meanwhile, Keir Starmer, leader of the Labour Party, remarked that the skyrocketing costs of government borrowing are a consequence of poor economic management by the country’s financial institutions.
Economists have warned that a time may come when the government could be unable to repay its debts.
This comes in a context where at least three prime ministers have changed in the past four years due to ineffective economic policies in the UK.