Search

date: 25 November 2009

embargo: For immediate release

Closing the deficit now could send economy into another downwards spiral

Responding to the revised GDP figures for the third quarter of 2009, published today (Wednesday) by the Office for National Statistics, TUC General Secretary Brendan Barber said:

'The economy is still in a very bad place, despite the continuing stimulus from the Government and Bank of England.

'Premature action to close the deficit runs the strong risk of sending the economy into another downwards spiral with terrible effects on confidence and unemployment.

'The UK economy is still in the intensive care unit. Switching off support now could be fatal.

'As Dominique Strauss-Kahn of the IMF told the CBI on Monday, the danger is stopping the stimulus too soon, not too late.'

NOTES TO EDITORS:

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

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

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

Press release (200 words) issued 25 Nov 2009