The UK is on course to be the only major economy to shrink this year owing to Jeremy Hunt's tax raid and higher borrowing costs, according to the International Monetary Fund.

The IMF downgraded its 2023 UK growth forecast by more than any other G7 nation, blaming the prospect of a deeper recession on “tighter fiscal and monetary policies”.

It leaves the UK economy languishing behind Germany and even sanctions-hit Russia, with both countries expected to eke out modest growth this year.