date: 18 July 2008

embargo: immediate

"Don't get hung up on economic rules" says TUC

The Treasury is right to consider revising the Government's economic rules says TUC General Secretary Brendan Barber today (Friday) andtheprioritymust be to minimise the effects of the downturn. In a statement he said:

'The Treasury is absolutely right to consider revising the Government's golden rules. Of course they have been important guides to Government intentions for more than a decade, but it would be a big mistake to get hung up on such rules when we face the twin challenges of the credit crunch and high oil and commodity prices. Such rules are inevitably somewhat arbitrary and must always be open to revision when circumstances change.

'The priority for government and economic policy makers must be to give priority to growth, and ensuring that the economic downturn is no worse than it needs to be. If that requires a bit more borrowing in these difficult terms, then that is well worth doing.

'Ministers should dismiss the inevitable political attacks. Opposition politicians will understandably have a go at the Government. That features high in their job description. But they need to beware of talking the economy down and making the slowdown deeper than it needs to be.'

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Press release (400 words) issued 18 Jul 2008