The International Monetary Fund (IMF) has downgraded its growth forecast for the UK next year, delivering a blow to Prime Minister Andy Burnham weeks before the Budget. Economic growth for next year is now expected to fall to 1.2%, down from a previous forecast of 1.3%.
Shadow Chancellor responds
Tory Shadow Chancellor Andrew Griffith said: "The IMF have downgraded Britain's growth next year due to high energy costs and escalating borrowing.
"John Healey must tackle both problems in the Budget by getting Britain drilling and dealing with out-of-control welfare spending. If the Chancellor reaches for more tax rises instead, he is choosing slower growth and working people will pay for it."
Budget pressure mounts
The downgrade comes just weeks before the Budget, increasing pressure on the Chancellor to address the economic challenges. The IMF's revised figure reflects concerns over energy costs and rising borrowing levels.
