Littlewood was speaking at the Work Foundation's Autumn Statement Briefing, discussing whether the chancellor's measures had the potential to support growth in the UK economy. He was joined on the panel by chair of the Big Innovation Centre and principal of Hertford College, Oxford, Will Hutton, and senior economist at the Work Foundation, Charles Levy.
Littlewood, former chief press spokesman for the Liberal Democrats, described the age we live in as 'Keynesian'. He said: "My view is we are starting to see the failings of the most Keynesian period of Government in our lifetime who are also completely incapable of producing growth."
Levy described the growth agenda package outlined in the statement as "very positive", but said it needed to be more focused on innovation and regional growth. He said: "The UK has a growth problem and without growth you cannot create jobs.
"There won't be another Olympics or Jubilee to help the economy and we are definitely not seeing the green shoots of recovery we hoped for.
"We need to focus our attention on attracting large, innovative companies."
Levy added: "Rich or poor people are worried about their jobs; every time Osborne stands up, the civil service should panic."
He continued: "This Autumn Statement just feels like a massive missed opportunity."
Hutton agreed, condemning Osborne's cuts to benefits and further squeeze on working families. Hutton said: "We are now four and a half years into a contained depression, so you must at one point evaluate when you are in a hole and when to stop digging.
"The freeze on benefits is utterly contemptible and has put so many ordinary working people and working families at maximum risk."
Hutton added: "This Autumn Statement is a calamity of the highest order and we will look back on this in a few years and we will be surprised it got even the slightest hint of positive reaction."
Littlewood finished with: "We have been dramatically let down by this Government."
