The UK has cut direct aid to Malawi after a diplomatic spat earlier this year in which each country expelled the other's envoy. Last year, the UK gave £19m ($30m) in budgetary support to Malawi. Fearing aid cuts, Malawi recently passed an austerity budget which did not include any foreign assistance. The UK envoy was told to leave after he was quoted in a leaked cable as saying President Bingu wa Mutharika does not tolerate criticism. Mr Mutharika recently explained his decision to expel Fergus Cochrane-Dyet by saying he would not accept insults just because Britain was the country's largest aid donor. In a statement, the UK's Department for International Development said Malawi's government was suppressing demonstrations and also criticised some of Malawi's economic policies. Malawi is one of the poorest countries in the world, with an estimated 75% of the population living on less than $1 (60p) a day. The UK recently expressed its disappointment with Malawi and reduced aid after the government purchased an extravagant presidential jet. The International Monetary Fund (IMF) has also cut aid to Malawi, which used to rely on donors for 40% of its budget. Source: BBC