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Working people will pay price for the economic disaster of a no deal Brexit

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A no deal Brexit would be a disaster for jobs, rights and public services

The Chancellor is set to announce a one-year spending review on Wednesday.

But the decisions he makes will be overshadowed by the threat of a no deal Brexit that would derail our economy and damage public services.

New analysis from the TUC shows that growth in the UK is already weaker than most of our industrial competitors, coming third from bottom in the economic growth league for industrial nations in the first half of this year.

Average quarterly GDP in first half of 2019

We know a no deal Brexit would damage the prospects of economic growth.

A no deal Brexit will also damage public services, diverting much needed funds into preparation, and disrupting the economy’s capacity to deliver the sustainable tax revenues that fund them.

Former chancellor Philip Hammond says that no deal preparations could cost as much as £90bn – at a time when social care, hospitals and local government are struggling.

Next week’s spending review risks being a charade unless the chancellor can rule out a disastrous no deal Brexit. And once again it will be working people who pay the price.

Years of austerity have left Britain’s economy weak, with too many insecure jobs and pay still falling behind. Social care, hospitals and local services are crying out for investment. But the chancellor is going to have to waste billions preparing for no deal disruption.

Our first ask to the Chancellor in our spending review submission is therefore to rule out a no deal Brexit and find a solution to the Brexit crisis which protects jobs, rights and peace in Northern Ireland.

  • But this is just the first step needed to rebuild an economy that works for everyone. The government should:
  • Invest in the modern infrastructure Britain needs to deliver a fairer, cleaner economy, with at least £17bn of new infrastructure investment, and a plan to deliver a just transition for workers including through a new skills entitlement.
  • Set out a ten-year funding plan to deliver world class public services, reversing the effects of a decade of cuts.
  • Tackle Britain’s unfair labour market and deliver a new deal for workers by introducing new trade union rights, raising the minimum wage to £10 as quickly as possible, investing in labour market enforcement, including the creaking employment tribunal system, and banning zero hours contracts.
  • Address sky high levels of in-work poverty with an end to Universal Credit, including the five-week wait, bringing an immediate end to the benefit freeze, and investing in making work pay.
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