Saturday, January 26, 2013

Osborne to ignore IMF warning and press on with austerity

The Chancellor, George Osborne has rejected a call from the IMF’s Chief Economist Olivier Blanchard to ease up on austerity measures in his next budget in March.

Mr Osborne said that the the benefits and credibility with the financial markets that Britain has built up as a result of the coalitions spending cuts and tax rises were "hard won and easily lost and that it would be "a huge mistake to put that at risk".

"From the beginning we have always emphasised that fiscal consolidation should be slow and steady," he added.