From the TUC

Economic report: November’s headlines

09 Dec 2011, by Guest in Economic Reports

The TUC’s latest economic report was released just ahead of the Autumn Statement. It predicted that the Chancellor would have to raise his borrowing forecasts by over £120bn – in the end he raised them by £158bn. This bit of over-optimism (or rather under-pessimism) aside it is still worth a read.

The headline findings were as follows:

  • Since the Government first set out its plans a £65bn growth gap has opened up.
  • As a result cumulative borrowing is set to increase by £123bn.
  • Over the next four years £83bn of spending cuts & £29bn of tax rises will only cut the deficit by £56bn.
  • The real problem over the past 18 months has been a collapse in domestic demand not the Eurozone’s troubles.
  • The Eurozone economy has grown faster than the UK over the past year and analysis by the OECD suggests that the UK slowdown preceded the Eurozone slowdown.
  • With domestic demand depressed and the international picture getting darker the prospects for the UK economy look grim.

3 Responses to Economic report: November’s headlines

  1. Why David Laws is very wrong on the state of the recovery | ToUChstone blog: A public policy blog from the TUC
    Jan 23rd 2012, 9:01 am

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    Jan 23rd 2012, 12:10 pm

    […] absolutely right that real wages are falling for the many rather than the few, and have been for over two years. But with the poorest fifth of households having far higher inflation rates than those in higher […]