The International Monetary Fund has warned that the UK's plan for tax cuts is likely to fuel the cost-of-living crisis.
The proposal is likely to increase inequality and push up prices according to the International Monetary Fund.
The pound plunged after markets raised alarm over the plans.
The measures will help the economy.
The tax package was funded by the government borrowing tens of billions of pounds.
The UK's central bank is trying to bring down inflation but the International Monetary Fund said that it could increase it.
The nature of the UK measures will increase inequality.
The top rate of income tax would be abolished and a cap on bankers' bonuses would be removed.
The announcement on Friday caused days of financial turmoil, as investors dumped the pound and UK debt, and some of the country's biggest banks suspended mortgage deals.
The Treasury is focused on raising living standards for everyone.
Mr Kwarteng was going to publish his medium-term fiscal plan on November 23, which would include ensuring that the UK's debt falls as a share of economic output in the medium term.
The International Monetary Fund warned that the mini-Budget may have been ill-judged and could increase income inequality.
How likely is it to be the other way around?
The tax cuts for the better off are part of the growth plan of the government.
A study done in 2020 by academics at the London School of Economics found that such policies didn't increase growth or jobs. The study claimed that they were more likely to widen the gap.
A top official from the International Monetary Fund told me that large-scale universal tax cuts in the UK would be a mistake.
The energy price crisis has led to calls for measures that are targeted towards the least well-off. The government is urged to focus on that when the Chancellor reveals the next part of his plan in November.
It's not clear if those calls will be taken seriously.
Labour's shadow chancellor said the government must "urgently lay out how it will fix the problems it created through its reckless decisions to waste money in an un targeted cut in the top rate of tax".
She said that waiting until November when the fiscal plan is published is not an option.
She said that the statement from the International Monetary Fund should cause alarm bells to ring in the government.
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