IMF: UK austerity will be a 'drag on growth'

The UK's planned austerity measures will be a drag on economic growth, the International Monetary Fund has warned.

In the concluding statement of its mission to the UK, the global body said the economy was still a long way from "a strong and sustainable recovery".

The IMF acknowledged that the government's austerity measures had earned it credibility.

But it added that fiscal policy needed to balance debt sustainability with growth concerns.

Hugh Pym reports.

BBC News