Downing Street rejects adoption of a Plan B

DOWNING Street yesterday insisted it would not adopt a Plan B on the economy, ahead of a crunch report from the International Monetary Fund (IMF).

The IMF has previously suggested the Coalition could have to change tack on its austerity programme unless there was significant progress.

But No 10 has rejected any shift in policy.

“We are on the right road, but we have to stick to it,” a spokesman for the Prime Minister said.

The IMF initially endorsed the Tory-LibDem Coalition’s cuts programme .

But in April managing director Christine Lagarde said Britain’s economic recovery was taking too long and that it was time to look at another approach. Conservative Chancellor George Osborne hit back, saying he would not take advice that he did not agree with.

In recent weeks there has been some good news for the UK economy.

Last month it narrowly avoided entering a so-called triple-dip recession.

Good inflation figures released yesterday also gave the Treasury optimism for the future.

The Coalition also says it needs time for its Budget announcements –including aid packages to help kickstart the property market – to work.

Downing Street yesterday said that the economy was “healing” but declined invitations to describe it as experiencing “green shoots”.