By Claire West

In a report released yesterday The Office for Budget Responsibility (OBR) blamed George Osborne’s austerity programme for lack of economic growth.

The Office for Budget Responsibility which was created in 2010 to provide independent and authoritative analysis of the UK’s public finances said; “Fiscal consolidation may also have done more to slow growth than we assumed.”

In June 2010 the OBR’s central forecast was for a slow but relatively steady recovery from the recession.

They had originally forecast that real GDP would have grown by almost 6 per cent from the beginning of 2010 to mid 2012, whereas the latest data show an increase of less than 1 per cent.

“Doubtless part of the explanation for the unexpected weakness of business investment is that the price and availability of credit have not eased as we expected.”