Chancellor George Osborne has been accused of persisting with a "self-defeating" economic policy, by a former senior Bank of England figure.

Adam Posen, who stepped down from the Monetary Policy Committee (MPC) in the summer, said last week's mini budget reinforced a "misguided" approach and urged change.

The US economist, who served on the MPC for three years, said he had consistently opposed the Coalition's stance but had been unable to speak out.

He said: "The Coalition Government's economic policies have focused on the wrong narrow goal and have eaten away at British economic capabilities."

Downing Street said it felt the economy was on the right track.