DEPUTY First Minister John Swinney has raised concerns over a ”very stark” warning by the International Monetary Fund over the UK Government’s tax-cutting strategy.

Overnight, the IMF warned it was “closely monitoring” the economic situation in the UK and urged the Chancellor to “re-evaluate the tax measures”.

It comes after Kwasi Kwarteng last week announced plans to scrap the top rate of tax for the super-rich and cut the basic rate to 19p in the pound in England.

The Scottish Government has not made a formal decision on whether to mirror the move but has all but ruled out cutting tax for the super-rich.

Mr Kwarteng’s announcement sent the pound spiralling, with it eventually falling to an all-time low against the dollar.

Speaking to the BBC on Wednesday, Mr Swinney, who is deputising as the Scottish Government’s Finance Secretary, said: “I’m very concerned by what the International Monetary Fund have said overnight.

“I think the warnings are very stark about the folly of the decision that have been taken by the UK Government.

“I think the IMF’s criticism of the unfunded tax cuts which will simply increase the cost of borrowing – and we’re already seeing that with punishing increases in interest rates which will affect people who have mortgages around the country and some of that increase in mortgage rates will dwarf the small savings that will be made in the unfunded tax cuts that have been made.”

Mr Swinney has called on the UK Government to “revisit” the decisions made last week after previously insisting that the Scottish Government will not follow suit.

He said: “Friday’s unfunded tax cuts will cause two things to happen: they will require a significant reduction in public expenditure in the UK and that will have a terrible effect on public spending in Scotland if the UK Government is to respond to the markets.

“And secondly, I think it will trigger a much deeper recession than would have been the case as a consequence of the turbulence that we’re experiencing now and that has the potential to have a knock-on effect into other countries and to effect global financial systems, which is a disaster for all of us.”