Osborne hit by IMF double whammy over growth and austerity

George Osborne's austerity plan came under attack today from the International Monetary Fund (IMF) after it downgraded the outlook for UK growth by more than any other advanced economy.

The IMF - which cut the UK's growth outlook for 2013 to just 0.7%, down from 1% - said Osborne (pictured) should reconsider his austerity plan because of a lack of demand. The report issued a specific note covering the UK, saying that since "recovery is weak owing to lacklustre demand, consideration should be given to greater near-term flexibility in the fiscal adjustment path". The IMF, which also cut its 2014 growth forecast for the UK from 1.8% to 1.5%, urged the Bank of England to buy up a wider range of assets via QE in order to boost growth. It said: "In the United Kingdom, o...