Budget 2012: TUC wants Osborne to reverse austerity

The Trades Union Congress (TUC) hopes chancellor George Osborne will “acknowledge the economic case for reversing his austerity plans” in his Budget speech.

Weak economic growth, higher than expected unemployment and the £158 billion increase in government lending are some of the reasons suggested by the group as demanding a change in the government’s policy.

The TUC suggests Osborne encourages companies to invest by cutting taxes on investment and infrastructure development, as well as offering more support to sectors such as manufacturing rather than financial services.

Brendan Barber, general secretary of the TUC, says: “Rather than carrying on with self-defeating cuts, the chancellor should do what’s right for the economy and prioritise tackling our jobs crisis and getting businesses to invest more of the £724 billion they are currently sitting on.

“Bold new measures such as youth credits and a job guarantee will help get young people’s careers off the ground. A tax system that rewards investment, rather than propping up the City, will help generate growth and jobs in the real economy too.”