International Monetary Fund lowers UK growth forecast

The International Monetary Fund has cut its forecast for the UK economy, saying it now thinks it will shrink by 0.4% this year.

It is the biggest downgrade of any advanced economy.

It predicts only a slow improvement in the picture next year with growth of 1.1% expected.

The IMF is also gloomy about the prospects for the world economy saying the global recovery is weakening and the situation could easily get worse.

Hugh Pym reports.