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  George Osborne warned by IMF that cuts 'pose headwinds' to growth
  
  Washington lender advises chancellor to bring on infrastructure spending plans to avoid jeopardising
  
  tepid recovery
  
  George Osborne, right, following the IMF's annual health-check of the British economy, presented in London.
  
  George Osborne was on Wednesday urged by the International Monetary Fund to rethink his plans for a
  
  £10bn tax-and-spending squeeze this year, as part of a broad based attack on the coalition's economic policies.
  
  After a fortnight's fact-finding mission in London, the Washington-based lender warned that the planned
  
  package of spending cuts and tax rises would "pose headwinds" to growth, which could jeopardise the
  
  "tepid" economic recovery.
  
  Asked whether that meant the government should slow the pace of deficit-reduction, David Lipton,
  
  the IMF's first deputy managing director, said it did.
  
  He urged the government to bring forward spending plans: "Within the credible medium-term objectives
  
  it's useful for the economy for some infrastructure and other measures to be brought towards the present.
  
  That would reduce the drag in this year and in the coming years."

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