IMF recovery warning raises spectre of more tax hikes

The IMF has said Britain's economy has less capacity to grow quickly over the next few years than the government had hoped, raising the spectre of more tax rises and spending cuts to keep Britain's recovery on track.

If the IMF is correct, it would mean a slow down in the reduction in borrowing to the point where it comes within a whisker of missing George Osborne's main fiscal target. FT MORE (subscription)

The number of active ISA rose to 15.3m in 2010-11, the highest figure since Isas were first launched in 1999, according to FT analysis of data from HM Revenue & Customs, despite rising domestic bills and stagnant wage growth. FT MORE (subscription)

UK manufacturing contracted unexpectedly in July, according to a survey, the first such decline in more than two years, while new orders posted their second decline in the past three months. The report underlines the problems facing the government as it aims to ‘rebalance' the economy towards manufacturing. FT MORE (subscription)

HSBC warned that it faces a ‘long' battle to stem soaring costs and revitalise profits as regulators drive through far-reaching reforms of the financial sector. New rules to safeguard the banking system are restraining growth, while escalating wages in booming emerging markets are pushing overheads ever higher, it said. Daily Mail MORE