Britain: Economy is getting worse, warns OECD and Conservatives have no answers to the problems

The outlook for the British economy is worsening, international experts said yesterday.

The Organization for Economic Cooperation and Development expects output to shrink by 0.7 per cent this year – far worse than the 0.5 per cent growth it had predicted in May.

Labour ridiculed the planning reforms of the Conservative government coalition as a "mouse when we need a lion to roar".


Winning back confidence in its handling of the economy is crucial for the increasingly unpopular Conservative-led government ahead of a 2015 general election, as pressure mounts even with the Conservative Party for a new economic strategy.

The government's new initiative involves easing planning laws to allow properties to be more easily expanded, removing restrictions on house developers and bringing in legislation allowing the government to underwrite infrastructure projects.

EU-Digest