By Marcus Leach

The International Monetary Fund (IMF) is expected to deliver its verdict on the UK's economy later today (Monday).

Having said, back in November, that the UK economy was 'on the mend' the IMF have since seen a contraction for the final quarter in 2010 (-0.5%) and a growth in the opening quarter of 2011 (0.5%).

There have been calls for the Government to come up with a 'Plan B' for economic policy, although Chancellor Osborne claimed the UK's fiscal plan was a 'credible' one.

"The economy is growing, jobs are being created. We would like the economy to grow further and we would like more jobs to be created," Osborne told BBC Radio 4's Today programme.

The fiscal plan is "the rock on which the British economy rests at the moment," according to Osborne, who went on to say the current economic plan had flexibility built into it.

A group of academics, in a letter to the Observer said the 'breakneck deficit-reduction plan was self-defeating'.

The letter went on to say that spending cuts are hindering economic growth, in turn reducing the amount taken in taxes and increasing the amount paid in benefits. This all ultimately leads to a decrease in the budget deficit.

In defence the government has cited the fact they have the backing of international financial organisations, with the IMF to have their say today.

"There are many many economists, many business organisations who create jobs in the economy, [and] many international bodies who support the difficult decisions we have taken over the last 12 months," Osborne said.