IMF managing director Kristalina Georgieva has warned governments, including the UK, to take difficult decisions to reduce debt and control borrowing costs. Her comments come ahead of the 28 October Budget, as Chancellor John Healey faces weaker growth prospects, persistent inflation and mounting pressure over public finances.

UK public-sector borrowing reached £18.3 billion in the latest month, around £3 billion above expectations and £3.5 billion more than the OBR forecast. Debt interest cost £8.8 billion, while total public debt was close to £3 trillion; the Conservatives are calling for benefit cuts, though Labour MPs are expected to resist, and Georgieva urged governments to encourage private-sector investment to support growth.