UK Economic Policies Could Trigger a Debt Crisis and IMF Intervention

Economists told the Sunday Telegraph that the economic policies of UK Chancellor Rachel Reeves could lead to a debt crisis and IMF assistance.

The UK's fiscal crisis is mainly manifested in budget deficits, surging debt, rising inflation, and debt defaults. Its root cause is related to the fundamental contradiction of capitalism, often triggered by factors such as economic cycle fluctuations, wars, or military buildup.

In July 2025, the yield on inflation-linked bonds in the UK broke through the highest level since 1998, with the 30-year inflation-linked bond yield reaching 2.56%, while the yield on regular government bonds also rose in tandem.

Continuously rising long-term inflation-linked bond yields may trigger systemic risks, and the UK government needs to respond through measures such as tax increases, but faces political resistance.

Original article: www.toutiao.com/article/1841282889463808/

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