Govt needs to take "bold action" to fight recession

30/12/2008

The government needs to take bold action in the New Year to fight recession, the Trades Union Congress has said.

Its director general Brendan Barber has outlined three priorities, which he says government should adopt to help the economy recover.

It should take "every action necessary" to keep the recession short, develop a proper response to mass unemployment and not repeat mistakes of the past.

He said the roots of the recession "lie in the failure of the finance and banking sectors" and our banking system did not truly serve "the interests of business or household borrowers".

"The government cannot be expected to come to the aid of every company that faces difficulties but it must be prepared to look at providing short term assistance to strategic companies in sectors vital to the future of Britain," he added.

Unions have also supported an increase in the National Minimum Wage (NMW), although the British Chambers of Commerce rejected any increase.

Its director general David Frost has said "when jobs are being lost daily and a recession is in full swing, it makes no sense to increase the NMW".

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