PCS: Weather not to blame for poor economic performance

PCS: Weather not to blame for poor economic performance

PCS: Weather not to blame for poor economic performance

Commenting on today’s (25) public finance figures from the Office for National Statistics, Public and Commercial Services union general secretary Mark Serwotka said:

“Rather than blame bad weather over a short period in December, the government must carry the can for the decline in our economy over the last three months of 2010.

“Even allowing for the weather, the ONS says growth would have been flat, after falling to 0.7% in the third quarter of the year from 1.1% in the second quarter.

“These figures show the coalition government’s plan to slash public spending, in the vain hope the private sector will step in, is simply not working.

“The economic recovery has halted and there is now a real risk of a double-dip recession, particularly when you consider the next quarter’s figures will include the impact of the VAT rise which is also likely to damage the retail sector.

“The main cause of the downturn is the government’s cuts. Since the coalition came to power unemployment has risen and capital spending by central and local government has gone down. Both of these factors had an impact on retail spending and construction, and both will continue in the coming months.

“Given the facts, you have to question why the government is intent on pursuing such damaging cuts. The only conclusion is that it is seeking to blame the public sector, the unemployed and low and modestly-paid workers for an economic crisis they did not cause.

“Despite the claims by George Osborne, there is an alternative which would see investment in jobs and public services to help our economy to grow, as well as a genuine effort to target the tax dodgers who deprive our public finances of tens of billions of pounds every year.”

ENDS

Notes

– For information and interview requests contact PCS national press officer Richard Simcox on 020 7801 2747 or 07833 978216

– The Public and Commercial Services union represents civil and public servants in central government. It has more than 300,000 members in over 200 departments and agencies, and in parts of government transferred to the private sector. PCS is the UK’s sixth largest union and is affiliated to the TUC. The general secretary is Mark Serwotka and the president is Janice Godrich

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