In its annual health-check for the UK economy, the IMF predicted growth of 1.2%, a marginal upgrade to its previous forecast.

The International Monetary Fund nudged up its growth forecast for Britain this year in a regular assessment of the country's economy, and it urged finance minister Rachel Reeves to stick to her plans to lower public borrowing.

The International Monetary Fund has upgraded its growth forecast for this year from 1.1% to 1.2% - but it warns of a major threat to the long-term prosperity of the UK. It states: "Persistently weak productivity remains the UK's primary obstacle to lifting growth and living standards.