The International Monetary Fund (IMF) has weighed in on the UK's deficit dispute and pledged its support for Labour's proposals to keep fiscal stimulus instruments in place well into 2010.A statement from the group comes as Conservative leader David Cameron and shadow chancellor George Osborne lock horns with their counterparts over the issue of how to rein in debt.The Conservatives have their eye set on swathing cuts and a scaling down of programmes such as quantitative easing, which has thus far cost £200 billion.It is an approach chancellor Alistair Darling has labelled irresponsible, a position that has now been vindicated by the IMF.Following a statement from the group, the pound moved higher against the dollar in foreign exchange trading as pressure mounted to keep support mechanisms in place.However, the organisation warned that spending cuts will be extensive and inevitably painful irrespective of whether it is Labour or the Conservatives that claim victory in the upcoming general election.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site