TUC calls for revision of growth and jobs plan

The government needs to move on to ‘Plan B’ for the UK’s labour market and economic recovery, it has been claimed.

Brendan Barber, secretary-general of the Trades Union Congress, expressed severe concerns for the state of the economy, in light of recent growth figures.

Last week, the Office for National Statistics revealed that gross domestic product declined by 0.5 per cent between October and December 2010.

Up until the final three months of the year, the economy had expanded for four consecutive quarters since the end of the recession.

“We need realism from the chancellor, not a kind of optimism that is hard to distinguish from blind faith,” said Mr Barber.

He claimed that the economy was “tanking” even before the £81 billion public cuts were announced in October’s Comprehensive Spending Review.

Mr Barber said George Osborne “must accept that his gamble with the economy has failed to pay off” and formulate a new plan for 2011.