According to The Daily Telegraph, only three of the 20 economists that signed a joint letter backing the government's deficit reduction plans in 2010 were still prepared to stand by their original view.

Economists are now calling for a change in tack, with a focus on pro-growth measures, including a reform of planning regimes, changes to stamp duty and investment in major infrastructure projects, such as increasing the UK's airport capacity.

In an open letter to the chancellor, published yesterday (19 August), Osborne's predecessor Alistair Darling called on him to adopt another plan before causing "immeasurable" harm to the country.

Darling suggests investment in new homes, power stations, railways and a third runway at London's Heathrow airport. However, the Treasury was quick to dismiss Darling's letter, with London free newspaper City A.M. citing a Treasury source as saying Darling was "behind the curve".