Gordon Brown was warned last night to raise the retirement age above 65 and introduce NHS charges to tackle the soaring state deficit.
In a devastating intervention, the International Monetary Fund called for radical changes to the pension system and spending cuts that go far beyond the plans outlined by the Prime Minister this week.
The global watchdog said root and branch changes to public sector spending would be necessary to 'help keep a lid on the debt' and restore financial stability. ...
... The IMF's broadside is highly unusual ahead of an election and reflects grave concern at the debt mountain built up by the Brown government.
The public reprimand will rekindle memories of the humiliation of the Callaghan government in 1976 when the IMF forced massive budget cuts on Britain to deal with the collapse of the pound.
Treasury ministers privately admit that the budget deficit is expected to rise to £200billion this year - £25billion more than the Chancellor predicted in the Budget.
That is the equivalent of £3,257 of debt for every man, woman and child, or £9,457 for the average family.
Oliver Blanchard, the IMF's top economist, told a press conference at a joint annual meeting with the World Bank that the next British government will 'have to take measures that improve the medium-term debt outlook'.
He added: 'That means reforms of the retirement system, that means reform of the healthcare system.'
BRITAIN HAS BEEN DOING NATIONAL HEALTHCARE LONGER THAN ANYONE ELSE IN EUROPE.
IF IT CAN'T WORK THERE, THEN IT CANNOT WORK ANYWHERE.
WE MUSTN'T LET OBAMA TAKE US DOWN THAT ROAD: IT'S THE ROAD TO SERFDOM.
UPDATE: SCOOPED HOT AIR BY A DAY.
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