Terrible results

"Even the OECD, which has traditionally supported government economic policy and George Osborne's deficit reduction plan, is now saying the chancellor should consider changing course," he said.

Asked later whether Mr Padoan's words signalled a watering down of the OECD's support for the government, Mr Gurria said: "Oh no, I was there.

"He was being questioned about a hypothetical example about a very dramatic drop in the rate of growth, and whether one would then have to change course.

"He said that if there are some terrible results or whatever we'll have to take a look at it. But no way was there any signal of a change in course."

Asked again if the OECD backed the coalition's deficit reduction plans, Mr Gurria said: "Absolutely. We think it's the way to go. We have said that you should stay the course and continue to support this route."