Search

date: 23 July 2010

embargo: For immediate release

Deficit fetishism risks a return to a flat line economy

Commenting on the preliminary estimate of GDP growth published today (Friday) by the Office for National Statistics, which shows that the economy grew by 1.1 per cent in the second quarter of 2010, TUC General Secretary Brendan Barber said:

'The impressive GDP figures are the result of fiscal stimulus and active policy making. But continued growth cannot be taken for granted, and there is now a huge risk that cuts in spending will bring the recovery to a shuddering halt.

'With depressed export markets, unemployment remaining stubbornly high and consumer confidence extremely fragile as people fear for their jobs, the worst conclusion that could be drawn today is that recovery has now been secured.

'We need continued low interest rates and an end to policies designed to shrink the state. Deficit fetishism still risks a return to a flat line economy.'

NOTES TO EDITORS:

- The ONS GDP estimate is available at www.statistics.gov.uk/pdfdir/gdp0710.pdf

- 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

- Congress 2010 will be held at the Manchester Central Convention Complex from Monday
13 September to Thursday 16 September. Free media passes can be obtained by visiting www.tuc.org.uk/congress/tuc-18063-f0.cfm and returning a form. Applications must be in by noon on Monday 6 September. Any received later than that will be processed in Manchester and will cost £50.

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 Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk

Press release (300 words) issued 23 Jul 2010