IMF warns UK tax plan to fuel crisis

The International Monetary IMF fund has openly criticised the UK's plans for tax cuts, warning that the measures would be used to fuel the cost-of-living crisis.

After Mr Kwarteng hinted there were more tax cuts to come, the pound fell to a record low against the dollar.

The Treasury said the plans would be funded by 72 billion of borrowing and there is an expectation that this will surge as interest rates rise.

He said the government should immediately review the measures set out on Friday and that the plan to provide an update on debt in November was too far away. Sir Keir said Labour expected to inherit a mess if it won the next general election, but he pledged to quickly return to its economic rules of only borrowing to invest.

The Treasury said that Mr Kwarteng was due to publish his medium-term plan for the economy on 23 November, which would include ensuring that UK debt falls as a share of economic output in the medium term.