TUC Warns Cuts May Irreparably Damage UK
8:17pm UK, Saturday September 11, 2010
The TUC states the Government’s “reckless” spending cuts will cause “irreparable” damage to British society and could well make the deficit worse.
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The body, which acts as an umbrella organisation for 58 British unions, made the attack in a statement released ahead of its annual meeting on Monday.
It stated the proposed budget reductions were not a fiscal necessity but a “dangerous project to permanently reduce the scale and scope of Government”.
The organisation stated next month’s spending review would see ministers reveal plans to start withdrawing £32bn from the economy in tax rises and spending cuts from April 2011, on top of £8.9bn already deducted this year.
This risks increasing unemployment which has been “stuck” at 2.5 million and will affect economic activity and undermine confidence, the TUC said.
“There is therefore scant prospect that the private sector will now create the new jobs needed,” it added.
“Falling confidence suggests a stagnant labour market and at ideal a jobless recovery.
“But the prospect of further deep public spending cuts makes even this look like an optimistic scenario, as both public-sector staff and employees in the many companies that depend on the public sector for orders lose their jobs.”
The TUC stated previous recessions show joblessness take a long time to fall
It stated making hundreds of thousands of public servants redundant at a time of reduced redundancy pay when there was tiny or no chance of finding private sector employment was “callous”.
The TUC warned that deep cuts to public services, benefits and tax credits were
bound to have more impact on those with low incomes.
The statement said: “Women, disabled people and those from black and minority ethnic communities are likely to be among the biggest victims of the cuts and the greater inequality they will bring.
“Unlike cuts, tax increases need not bear down on those least able to afford them, and can reduce inequality across society as a whole.”
It also warned cuts and pay freezes would seriously damage morale in services such as the NHS.
Sky News political correspondent Glen Oglaza said: “This flies in the face, they say, of promises from George Osborne and David Cameron during the election campaign that the rich would take as much of a hit, if not more of a hit, than the poorest in society and frontline services would not be affected.
“Not surprising this, coming from the TUC… but it will set some mood music for the conference.”
Read the statement in full at the TUC website.
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