Osborne’s fast and extreme cuts are a dangerous rejection of OECD warnings, says TUC

4 June 2015

Commenting on the publication today (Thursday) by the Treasury of plans for in-year cuts to departmental budgets, which come ahead of announcements expected in the July Budget of further cuts including tax credits, TUC General Secretary Frances O’Grady said:

“The Chancellor failed to meet his deficit targets in the last parliament because he chose cuts over investment for growth, and he’s about to make the same mistake again. Despite the OECD warning this week that fast cuts are a danger to growth, he’s rushing ahead and putting education and innovation in the frontline for some of the largest cutbacks.

“This is the wrong plan. We need an investment-led approach to deliver the strong recovery needed for wage rises, productivity gains and higher living standards. But the Chancellor’s plan for fast and extreme cuts will hold back growth, and it will slash the tax credits and vital services that workers and their families rely on.”

NOTES TO EDITORS:

- Further information on the concerns raised in the OECD Economic Outlook (published on 2 June 2015) can be found at http://touchstoneblog.org.uk/2015/06/the-oecd-the-b-minus-economy-the-case-for-infrastructure-spending-and-the-uk/

- All TUC press releases can be found at www.tuc.org.uk

- Follow the TUC on Twitter: @tucnews