TUC Autumn Statement reaction

Responding to the Autumn Statement today (Wednesday), TUC General Secretary Frances O’Grady said: “The living standards crisis has wrecked the Chancellor’s strategy.

“He has failed his deficit reduction pledge as low-paid Britain is paying much less tax than expected. And businesses won’t find the customers they need if consumers do not have money in their pockets.

“Nothing in today’s Autumn Statement will give Britain a pay rise, and Conservative plans to effectively outlaw strikes will help make Britain permanently low-paid. Wrapping up last year’s infrastructure presents and giving them to us again will not give the economy the extra boost it now needs.

“Today should have seen policies for growth, but the Chancellor has boxed himself in with a rigid and artificial deficit reduction timetable. If he continues in office that will mean eye-watering spending cuts straight after the election. These would knock the recovery sideways, deter investment and lead to great damage to our social fabric.

“The way to heal the public finances is to build a strong growing economy in which successful companies and well-paid workers pay fair taxes. Pre-election giveaways today under this Chancellor will lead to even bigger spending cuts now that the global economy looks increasingly fragile.

“This is economic self-harm, threatening a vicious circle of further decline. That would be Groundhog Day all over again – the same mistake that the coalition made in its first two years.”