- 10 updates
Despite the downgrading of the OECD's forecast, Chancellor George Osborne this evening insisted there were "positive signs" in the UK economy.
Mr Osborne told a CBI Scotland dinner in Glasgow:
Britain must shift to a more highly skilled economy in a bid to ease the burden on the squeezed middle, Labour leader Ed Miliband said today.
The next Labour government would not be able to simply increase tax credits for the less well-off as it did during the Gordon Brown years, he said.
Instead, the UK had to move away from its "low-wage economy" so that workers were better paid and could help stimulate economic growth, Mr Miliband told a conference at the London Stock Exchange.
"The redistribution of the last Labour government relied on revenue which the next Labour government will not enjoy," he said.
"The option of simply increasing tax credits in the way we did before will not be open to us."
Responding to the growth forecast published by the OECD, Shadow Chief Secretary to the Treasury Rachel Reeves said: "These very concerning forecasts show just how badly the Government's economic policies have failed. Britain's growth forecasts have been slashed by more than any other major economy.
"And while Ministers desperately try to blame allour problems on the Eurozone crisis, the OECD says France and Germany are doingbetter than us.
"In fact Britain is one of just two G20 countries in adouble-dip recession.
"David Cameron and George Osborne need to stop clinging on to their failed economic plan and change course now. Without a serious plan for jobs and growth we won't get the deficit down and yet more long term damage will be done."
Commenting on the OECD forecast, which put the UK's growth forecast at -0.7%, the Prime Minister's official spokesman said:
The Bank of England has also left the scale of its quantitative easing programme to boost the money supply unchanged at £375 billion.
The Bank of England kept interest rates at 0.5% today.
The Organisation for Economic Co-operation and Development (OECD) has cut its forecast for growth in the UK to -0.7% for this year. This has fallen from 0.5%.
"We need more change, not less," Ed Miliband and Ed Balls will say during a speech at the London Stock Exchange today, as they set out Labour's three new agendas for economic change:
Shadow Chief Secretary to the Treasury Rachel Reeves has told ITV1's Daybreak that the Government had "permanently damaged" the economy and "radical change" was needed to rectify the situation.