date: 22 April 2009

embargo: For immediate release

TUC reaction to the 2009 Budget

Responding to the 2009 Budget today (Wednesday), TUC General Secretary Brendan Barber said: 'There is much to welcome in this Budget, particularly action on youth unemployment, some first steps in creating a fair tax system and better support for the unemployed.

'There is some help for construction and a Strategic Investment Fund provides real resources for Monday's welcome industrial strategy. Pensioners will welcome the increase in capital disregards. This Budget clearly acknowledges that the Government has a central role to play in turning the UK into a competitive low carbon economy.

'But it is does not bring the same boldness and vigour to getting the real economy right as the Government showed in dealing with the banking collapse. The biggest drain on the public finances will be continuing mass unemployment and we needed a bigger and better targeted stimulus to the economy today. A half per cent boost in public spending is not enough this year. Next year's tightening is too much, too soon and is based on an optimistic assumption that the recovery will start this year.

'In particular cuts in public spending - and these are cuts, not efficiency savings - are absolutely wrong at a time when there is a collapse in demand in the private sector.

'So while we can welcome some significant changes in direction and good individual policies, this is still some way short of what was needed to maximise the fight against unemployment and ensure that we emerge from the recession as a fairer, greener and better balanced economy.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk

Press release (400 words) issued 22 Apr 2009