‘Meagre’ growth figures spark renewed call for economic Plan B from
Unite
26 July 2011
The meagre and pathetic growth figure of 0.2 per cent for the
last quarter shows that an economic Plan B was ever more urgent,
Unite, largest union in the country, said today (Tuesday 26
July).
Unite argues that this figure reveals the threadbare nature of
chancellor of the exchequer George Osborne’s economic strategy and
it does nothing to alleviate the economic devastation in the ‘real’
economy – where jobs are being lost, public services axed, and
manufacturing and small businesses are being strangled by
government policy and strait-jacket lending policies by the
state-owned banks.
Unite general secretary, Len McCluskey, said: ”With every
passing month it is becoming clearer and clearer that the
government’s monetarist and fiscal policies are not delivering the
level of growth necessary for the British economy to recover. For
example, UK manufacturing sector growth fell to its lowest rate for
21 months in June, as export orders slumped.
”The latest meagre and pathetic growth figure announced today of
0.2 per cent may play well with George Osborne’s chums in the City,
but in the real economic world, it can bring only further despair
to working people, their families and communities.
”It is complacent of ministers to blame global economic problems
for the bad figures. What we need to remember is that Britain
stayed out the eurozone to give it more freedom of economic action
– many of the problems we face are home-grown and can be laid
directly at the door of George Osborne.
”It is interesting to note the reports that there is rising
tension between David Cameron and George Osborne about growth
strategy – it is dawning on the prime minister that his friend is
no economic genius.
”We need to boost domestic demand and one way to do this would
be to cut the VAT rate, currently standing at 20 per cent. But if
people don’t have confidence in their job security and are being
continually hit by soaring household bills and energy costs, they
are not going to go out and spend.”
Len McCluskey said that key elements in a Plan B rescue package
should include:
- Boosting manufacturing capacity – and a first step would be to
reverse the Bombardier train carriage decision and allocate the
contract to the Derby-based firm, coupled with an urgent review of
government procurement policy
- Reforming the taxation system, so that the rich and City elite
pay an increased level of taxation
- Closing the tax ‘evasion’ loopholes that are costing the
exchequer billions of pounds in lost revenue
- Ordering the banks, especially those owned by the taxpayer,
such as RBS and Lloyds, to relax their lending policies to help
industry and especially small businesses, obtain the lifeblood
capital they need to generate new jobs. Unite supports the creation
of a Strategic Investment Bank
- A radical rethink of the budget deficit strategy that is
hitting public services and the NHS, with the accompanying cuts to
services, often to the most disadvantaged in society; and the
mounting job losses to the public sector workforce
- Scrapping the Private Finance Initiatives (PFIs) which are
adding enormously to the bill for new hospitals, schools and
libraries.
Len McCluskey said: ”If the coalition adopts even half of the
measures we have proposed there would be an upturn in our economic
fortunes – investment would grow, so would jobs and there would be
more money for public services.”
ENDS
