The International Monetary Fund (IMF) has urged the Labour Party to take immediate action to bring its soaring welfare bill under control, amid concerns over the party's move to the Left under a new leader.
The IMF's warning comes as investors grow increasingly anxious about the UK's borrowing costs, which have reached fresh highs due to the uncertainty surrounding Labour's leadership.
A Labour spokesperson stated that the party is committed to its core values and will not be swayed by external pressure. However, the IMF's call for action has been echoed by some Labour MPs, who have expressed concerns about the party's financial management.
The IMF's warning is the latest in a series of concerns raised about Labour's financial management, with the party facing criticism over its plans to increase public spending and raise taxes.
Labour's new leader has vowed to implement a series of radical policies, including a significant increase in the minimum wage and a crackdown on corporate tax avoidance. However, these plans have been met with scepticism by some economists, who warn that they could exacerbate the country's already high borrowing costs.
The IMF's warning is a significant blow to Labour, which has been seeking to position itself as a serious contender for government. However, the party's leadership chaos has sent a clear signal that investors are no longer willing to give them the benefit of the doubt.