TUC: Private sector also at risk from cuts

Monday, 25 October 2010 12:00 AM

Brendan Barber, TUC general secretary, comments on David Cameron's speech to the CBI:

"The prime minister has eloquently identified the challenges facing the UK economy over the coming decades and has outlined some useful policy ideas.

"But with tomorrow's figures for growth expected to confirm the weakness of the UK economy - covering a period before the huge cuts were announced - the proposals come nowhere near what is needed.

"Investment in productive businesses has long lagged behind our competitors and has been far too skewed towards property and finance.

"Some in government seem to think that public sector cuts will automatically spur private sector growth, but with cuts hitting both public purchasing and consumer confidence, it is more likely that the cuts will take down important parts of the private sector too.

"If we are to avoid a lost decade we need to see policies such as establishing a major publicly-owned investment bank and reversing the short-sighted cut in capital spending."

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