UK Chancellor George Osborne will outline plans to boost the UK's sluggish economy later, against expected gloomy forecasts for growth. He will deliver his update on the state of the UK economy, as well as his response to economic forecasts by the Office for Budget Responsibility. Some details of credit easing, youth employment schemes and infrastructure investment have already been unveiled. On Monday, the OECD warned that the UK was likely to slip back into recession. The economic think tank predicted a 0.03% contraction in the UK economy this quarter, and a further 0.15% the next. Bank of England governor Sir Mervyn King told MPs that growth would be flat for the next six months as the eurozone crisis threatens the UK's recovery. Infrastructure projects Mr Osborne will deliver his Autumn Statement - an update on the government's economic plans based on the latest forecasts from the independent OBR - shortly after 12:30 GMT in the House of Commons. He is expected to confirm that growth will be lower and borrowing much higher than planned. In the Budget in March, the OBR cut its growth forecast for 2011 to 1.7% and its 2012 forecast to 2.5%. It is expected to cut both again to around 1%. The government has pledged to eliminate the UK's structural budget deficit over five years - which at the time of the Budget Mr Osborne was on course to do by 2014-15. BBC economics editor Stephanie Flanders said the chancellor was likely to confirm that extra breathing room had been lost - and the target would now be met by 2016 - after the next general election. Borrowing, which had been forecast to be £37bn in 2014-15 - is now widely predicted to more than double to £81bn. Childcare places In his statement Mr Osborne is expected to elaborate on schemes already outlined in the past week. These include a bid to encourage British pension funds to invest in £30bn of infrastructure projects over ten years, a £1bn three-year scheme to subsidise work placements for young people, a £40bn scheme to underwrite bank loans to small businesses and a mortgage indemnity scheme to boost the housing market. BBC News Channel chief political correspondent Norman Smith said he believed ministers had wanted to flag up their growth projects ahead of the Autumn Statement - because there is a fear that the headlines will be dominated by grim growth forecasts. Mr Osborne is expected to announce other schemes - including a doubling of the number of free childcare places for deprived two-year-olds to 260,000, at a cost of £380m a year by 2014-15, in a bid to help more mothers back to work. There have also been reports that the government might unveil further savings in the welfare budget - by not increasing all benefits in line with September's 5.2% inflation figures - or by a squeeze on working tax credits. Labour has accused them of "robbing Peter to pay Paul" by cutting in one area to fund growth policies. The government aims to eliminate the UK's structural budget deficit by 2015-16 - a policy it argues is necessary to ensure market confidence in the UK and keep it out of the "danger zone". But Labour says the scale and pace of spending cuts are choking off growth and have urged the government to change course. They want ministers to cut VAT and use a tax on bank bonuses to fund youth employment programmes. Party leader Ed Miliband said: "We welcome anything that will make a difference to the economy, but the problem is the government doesn't really seem committed to changing course. "In the circumstances the right thing to do is accept that there is a real need to change the way they are doing things." He says a further rise in borrowing will be a "catastrophic blow to the government's credibility" and proof that their deficit reduction plan "isn't working". But the chancellor said on Monday that the public had "had enough of politicians who think there is a quick fix solution, who say you can borrow a bit more to get us out of debt" and wanted the government to "stick to the plan that will take us safely through the storm". And Business Secretary Vince Cable said on Monday that there would be no proposals in Tuesday's statement to slow down on spending cuts.