TUC warns that spending cuts will prolong recession

A strong public sector could help lift the UK out of recession, the TUC claims.

In its Speaking up for public services pamphlet, published today, the Trades Union Congress (TUC) said that cuts in public spending will prolong the recession.

According to the TUC, for every £1 of public money invested in public services through direct employment or procurement of supplies and services, a further 64p is generated in the local economy.

The pamphlet, written for the TUC by the Association for Public Service Excellence (APSE), also says that a 10% cut in public spending would see about 200,000 public sector workers lose their jobs.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

Email(Required)

OptOut

From time to time, we will send you emails about selected products, events and services from Personnel Today - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box.

Name

This field is for validation purposes and should be left unchanged.

Δ

As about 29% of public sector spending goes into the private sector, this would mean a loss of about £16.8bn in investment, said the TUC.

Paul O’Brien, chief executive of APSE, said: “While the public sector may seem a fashionable target for cuts, there is a real danger that slashing public expenditure, when the economy is on a fragile road to recovery, would lead to a ‘double dip’ in a post-recession environment.”