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No need for ‘Plan B’ – Cameron

Prime Minister David Cameron has announced that the Government does not need a ‘Plan B’, and has no intention of easing the austerity programme.

His statements come as the IMF forecasts that Britain will miss its deficit reduction targets this year, predicting it will be reduced by 1.25% and 1.5% this year and the year after.

Cameron told the BBC: “These are difficult times for the economy and what the IMF report is doing is coming into line with other forecasters who have already said that growth is going to disappoint right across Europe this year. We know that.

“The IMF also say we shouldn't abandon our plans in making reductions in government spending and also regrettably in some cases put up taxes to get on top of our debt and our deficit.

“It's not 'Plan B' that we need. What we're doing is making sure that every part of 'Plan A' is firing on all cylinders.”

Many critics have been calling for the Government to introduce measures to boost growth, as Chancellor George Osborne announced he would extend the programme of cuts until 2018.

Ed Balls, the shadow chancellor, said: “The IMF has rightly warned that the government's policies risk causing permanent damage to our economy and growth is needed to get the deficit down. And, like Labour, they've said a Plan B should include temporary tax cuts and additional infrastructure investment. It's time David Cameron and George Osborne finally listened and took action to kickstart our economy before even more damage is done.”

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