UK growth forecast 'cut to -0.7%'

The respected financial think-tank the OECD has revised down Britain's growth for this year from 0.5% to -0.7%.

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Miliband: 'UK must shift to a more highly skilled economy'

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.

Labour Leader Ed Miliband. Credit: Pool

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."

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