Gloomy outlook from Bank of England suggests economic strategy must change
“With the Bank of England warning that the economy is getting weaker, it would be disastrous for the Chancellor to rush ahead with his plans for extreme cuts. The priority should be boosting wages, not shrinking the state.
13 May 2015
Commenting on the Bank of England’s latest economic outlook published today (Wednesday), which revises down growth forecasts for the next three years, TUC General Secretary Frances O’Grady said:
“With the Bank of England warning that the economy is getting weaker, it would be disastrous for the Chancellor to rush ahead with his plans for extreme cuts. The priority should be boosting wages, not shrinking the state.
“It’s particularly worrying that the Bank of England has revised down productivity. Massive cuts will slow productivity growth further and limit investment in the skills, infrastructure and innovation that we need to create a genuinely high-value economy.
“The Chancellor needs to change course and take advantage of almost zero-cost borrowing to invest in stronger growth and a high productivity recovery.”
NOTES TO EDITORS:
- All TUC press releases can be found at www.tuc.org.uk
- Follow the TUC on Twitter: @tucnews
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