Cuts 'will increase unemployment'

Sep 13 2009

Public spending cuts would spark a "double quick, double dip" recession and push unemployment over four million, a senior union leader warned.

Brendan Barber, general secretary of the TUC, said it was "astonishing" that calls were being made to cut the public sector deficit as a top priority.

Speaking on the eve of the TUC Congress in Liverpool, Mr Barber said the economy was still in a "very precarious" position.

"Cut the stimulus off and the economy would go into decline again. Public spending cuts will provoke a double quick double dip recession.

"Unemployment could well exceed four million and it would take many years before there was any chance of returning to anything like full employment. That would scar for life a whole generation of young people."

The TUC published a report analysing the effects of possible public spending cuts on the 25 local authorities with the highest levels of unemployment.

The study found that areas such as Liverpool, Leicester and Middlesbrough would suffer increases in unemployment of around 40%.

The report also warned that a 10% cut in public sector staff would lead to 700,000 workers being laid off.

Merseyside would be the hardest region hit as it has the highest proportion of public sector jobs in the UK.