UK And IMF Face Dust-Up On Austerity


George Osborne is to go toe-to-toe with the International Monetary Fund next month in a battle over the credibility of his Plan A on austerity for the UK, amid signs that incoming Bank of England governor Mark Carney will be a key ally in his fight, the Financial Times reported. The chancellor is said by aides to be prepared to “aggressively” defend his policies when an IMF team arrives in London to make an annual assessment of the British economy, and is prepared to defy their recommendations if necessary. Mr Osborne fears that an anti-austerity faction is winning an internal IMF power struggle and that the Fund will hand the opposition Labour party a propaganda tool by formally urging him to relax his fiscal plans. Read more. (Subscription required.)