John McDonnell MP, Labour’s Shadow Chancellor,responding to the OECD’s Interim Economic Outlook, which calls on countries like theUK to reduce their austerity measures and increase investment spending,said:

“This is a highly important intervention by the OECD, who in the past have been relatively supportive of the government’s economic policy, but George Osborne is starting to look increasingly isolated, as now the latest report from the OECD confirms what Labour have been saying that the Chancellor should change direction.

“The OECD are correct to advise, what Labour has been arguing for months, that we need to increase investment, as the time is right to invest now in our future in much needed infrastructure, so that we avoid paying more at a later date for missing this opportunity.

“But the truth is that since entering Number 11, George Osborne doesn’t put his money where his mouth is on infrastructure spending. He cut the level of investment in the UK with investment in infrastructure set to fall as a share of GDP, and he has allowed the Infrastructure Pipeline to become blocked with only 9 per cent of projects listed as started.

“Today’s statement from the OECD will come as yet another hammer blow to this downgraded Chancellor’s already fading economic credibility. But George Osborne has to start to listen and cannot just stand in the way for what is best for the UK economy out of fear for his Tory leadership bid.”