The International Monetary Fund has said the UK economy is heading for a 'soft landing' but reiterated its message to Jeremy Hunt that he should not have cut national insurance at the last two fiscal events. In its annual check-up on the state of Britain's economy, the Washington-based Fund also warned of a black hole in the public finances, with £30bn of spending cuts or tax rises needed to stabilise the national debt.
' However, the IMF - which has warned the government explicitly in the past not to cut taxes too fast in the face of rising spending projections in future - said that the two 2p national insurance contribution cuts at the last two fiscal events were a mistake. 'In light of the medium-term fiscal challenge,' the report said. 'Staff would have recommended against the NIC rate cuts, given their significant cost.