Conservative government is “flirting with a recession” – TUC responds to interest rate hike

• Ministers “hiding behind" the Bank of England after decision to hike interest rates again, according to union body
• Jeremy Hunt is “sitting on his hands" and setting us on course for another economic shock - TUC

Commenting on the decision to hike interest rates once more to 5.25 per cent, TUC General Secretary Paul Nowak said:

"This Conservative government is flirting with a recession.

"Instead of delivering a real plan to get us out of this living standards nightmare, ministers are hiding behind the Bank of England.

“This interest rate hike will only heap more misery on households and businesses – and put many thousands more jobs and livelihoods at risk.

“It’s the last thing working people need in the middle of a cost of living crisis.

“The government needs to deliver strong, shared growth, rather than an economy that is stagnating or shrinking.

“Make no mistake. The chancellor is sitting on his hands while the economy runs into a wall and it will be working people who pay the price.

“Setting us on course for another economic shock is reckless – not responsible.”

Teetering on the brink of recession

The TUC this week warned that Britain is “teetering on the brink of recession” as new analysis showed that employment is falling in the majority of UK industries.

The analysis – of official statistics – shows that job numbers are contracting in 11 of the main 20 industry groups.

The industries with the biggest contraction in jobs are:

• Accommodation and Food – where 34,000 jobs have been lost
• Wholesale and retail – where 27,000 jobs have been lost
• Construction – where 17,000 jobs have been lost

Across all 11 industries where employment has fallen a total of 120,000 jobs have been lost between March and June this year.