UK braced for another downbeat economic forecast

The British government is expected to release more bad news about the economy as it updates Parliament on the latest forecasts and changes to its spending plans.

Treasury chief George Osborne will release the latest forecast from the Office for Budget Responsibility when he speaks to the House of Commons at midday Tuesday. A downgrade in growth expectations is regarded as inevitable and will come a day after the OECD warned that Britain would slip into a mild recession in the current quarter.

With the outlook worsening and public sector workers set for a one-day strike on Wednesday, Osborne has already outlined some plans to get more loan funding flowing to small and medium-sized industries and to support employment by investing in the nation's infrastructure.