OECD figures suggest Britain's economy will slip back into recession at the start of next year

The Organisation for Economic Development and Cooperation (OECD) is predicting that the economy will shrink, the Government was warned on Thursday.

Whitehall sources said the forecasts suggest that growth would be negative during the first six months of next year due to the euro crisis.

The prediction, to be published on Monday, is the first from a respected forecaster to indicate that Britain faces a double-dip recession.

The preliminary findings of the OECD, to be released on the eve of George Osborne’s Autumn Statement, are said to have “sent a lightning bolt” through the Treasury and Downing Street. On Tuesday, the Chancellor will announce his growth strategy, which will lead to billions of pounds in infrastructure spending and a scheme to increase loans to small and medium-sized businesses.   Read More