Public investment is needed to clear the deficit, says TUC

22 September 2015

New public sector finance figures published today (Tuesday) by the Office for National Statistics – which show government borrowing of £38.4 billion in the financial year to date – suggest that the government is falling behind schedule to meet its greatly revised forecast for public borrowing this year, says the TUC.

And the big picture remains that George Osborne has delivered the weakest recovery in UK history, with the result that he now intends to borrow £50 billion more this year than originally planned in 2010.

TUC General Secretary Frances O’Grady said:

“Severe public spending cuts have failed to clear the deficit. They have slowed down the recovery and held back wage growth, leaving income tax revenues and national insurance receipts much lower than expected.

“With interest rates for government borrowing close to zero, the government should boost the economy with investment in skills, infrastructure and affordable housing. This would be a much better plan for long-term growth and stable public finances.”

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