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date: 26 July 2011

embargo: For immediate release

Cuts are hurting but not working, says TUC

Commenting on the latest GDP figures published today (Tuesday) by the Office for National Statistics (ONS), which show that the economy grew by 0.2 per cent in the second quarter of 2011, TUC General Secretary Brendan Barber said:

'It's hurting, but it isn't working. Ministers told us that deep rapid cuts would get the economy back on course and leave the private sector room to grow.

'But the treatment has turned out to be worse than the disease, and with the government borrowing more last month than they did a year ago they are not even tackling the deficit effectively.

'The detail in the figures is even more worrying. There is no sign of an export-led recovery with productive industries falling by 1.4 per cent. And the cuts are now beginning to bite as the government made no contribution to growth last quarter.

'The big worry must be that that we are now trapped in a stagnant economy with such damage done to both business and consumer confidence that growth - which provides the only real long-term solution to the deficit - is receding into the distant future.'

NOTES TO EDITORS:

- The ONS first estimate of second quarter GDP growth can be found at www.statistics.gov.uk/pdfdir/gdp0711.pdf

- Further analysis of the GDP figures is available at www.touchstoneblog.org.uk

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

Press release (400 words) issued 26 Jul 2011