Austerity has wiped out the recovery

date: 25 July 2012

embargo: For immediate release

Commenting on the first estimate of GDP growth in the second quarter of 2012, which shows that the economy contracted by 0.7 per cent, TUC General Secretary Brendan Barber said:

'The government's austerity strategy is failing so spectacularly that is has wiped out the recovery completely. The economy is now smaller than when the government took office two years ago. The recent GDP fall is as bad as anything we saw following the 2008 financial crash.

'The UK is on course for a longer depression than the 30s, the tightest squeeze in living standards since the 20s and more than a million young people are currently out of work.

'Ministers cannot just repeat the same old excuses - Europe, bank holidays and the previous government - for the economic mess they are presiding over. They need to change course as their policies are causing permanent damage to our economy.

'The government must abandon self-defeating austerity and prioritise public and private investment in infrastructure and in the futures of our long-term unemployed to get Britain working again.'

NOTES TO EDITORS:

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