Current and future chancellor face tough choices after IMF report on UK economy

Body says 30bn fiscal gap cannot be filled by higher growth or extra borrowing. So how will No 11 ease pressure on public finances?

A report that tells the UK government it faces a 30bn funding gap that cannot be filled by higher growth or extra borrowing is a blow to both the current chancellor and the next one.

Tuesday's International Monetary Fund assessment of the UK economy and Whitehall spending argues that betting on the economy revving up over the rest of the decade will not be sufficient to pay for all the likely welfare bills associated with an ageing population.