IMF warns Jeremy Hunt against tax cuts in budget

Lower tax levels may not be possible without extra borrowing or post-election spending reductions, says Washington-based body

The International Monetary Fund has issued a strong warning to Jeremy Hunt against cutting taxes in his budget in March, stressing the need to boost key areas of public spending instead.

In updated forecasts for the UK and the rest of the global economy, the Washington-based fund doubted whether the widely anticipated tax cuts would be possible without extra borrowing or post-election spending cuts.