- 8 updates
The OECD said the UK economy may need more stimulus and a further round of quantitative easing may be necessary.
The OECD said UK growth remained flat, and is only expected to "pick up momentum" towards the end of next year. The Paris-based economic think tank forecasts that the UK economy will grow just 0.9% this year, after shrinking 0.1% in 2012.
Angel Gurría, the OECD's secretary general, said a "particularly bright spot" in the UK was employment figures.
The Organisation for Economic Co-operation and Development said the UK must do more to boost growth and tackle inequality, which it says are key to the economic recovery.
Speaking at a press conference with George Osborne, Angel Gurría, the OECD's secretary general again gave the Chancellor broad support:
In its annual report on the state of the economy the OECD said:
Rachel Reeves MP, Labour's Shadow Chief Secretary to the Treasury said the Green Budget, released today by the IFS, shows the government's plan has failed.
Paul John, director of the Institute for Fiscal Studies, said the effects of further spending cuts on government departments already having their budgets slashed would be "hard to contemplate" and it was more likely that "protected" departments would be hit in the next parliament.
The Institute for Fiscal Studies said the Chancellor will borrow £64 billion more than intended during this parliament.
The increased figures is due to Osborne's original borrowing predictions being based on a more optimistic economic outlook. The IFS explain:
The IFS has predicted that public sector employment will fall by 1.2 million by 2017-2018, should the current spending cuts continue. This figure is higher than previously predicted:
The Institute for Fiscal Studies (IFS) has released its Green Budget, outlining the impact of the government's budget plans in the coming years.
Based on its analysis, public service spending in "unprotected" Whitehall departments (health, schools and overseas budget are "protected") could fall by a third between 2010-2011 and 2017-2018. This figure could even reach 35%:
Latest ITV News reports
The independent Institute for Fiscal Studies warns of more borrowing, more public sector jobs losses, and more cuts to public spending.