The International Monetary Fund on Tuesday said Britain may need to further slow the pace of its tough austerity measures to lift the country's growth amid the risk of a major eurozone "shock".
"Fiscal easing and further use of the government's balance sheet should be considered if downside risks materialise and the recovery fails to take off," said the fund's annual report on Britain.
"If growth does not build momentum... planned fiscal adjustment would need to be reconsidered," it added.
If growth remains low, Britain should consider temporary tax cuts and more infrastructure spending, the report said, along with monetary stimulus and a possible further cut to interest rates below 0.5 percent.
The world's seventh largest economy slipped back into recession at the end of last year but Prime Minister David Cameron has stood by tough austerity measures, albeit at a slower pace than before.