TUC: Govt investment needed to boost economy

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Investment in skills and enterprise is being called for by the TUC

Significant government investment in enhancing the skills of staff and helping businesses to grow is now required to help arrest further increases in the national deficit.

This is the view of the Trades Union Congress (TUC) following the publication of the latest official figures from the Office for National Statistics that show the UK's level of  government borrowing now stands at £38.4 billion in the financial year to date.

Promises to bring down the national deficit lay at the heart of the Conservative Party's pre-election manifesto, but with such high levels of debt it appears the situation may be getting away from the government at present.

TUC general secretary Frances O'Grady said: "Severe public spending cuts have failed to clear the deficit. They have slowed down the recovery and held back wage growth, leaving income tax revenues and national insurance receipts much lower than expected.

"With interest rates for government borrowing close to zero, the government should boost the economy with investment in skills, infrastructure and affordable housing. This would be a much better plan for long-term growth and stable public finances."

Small businesses in particular could benefit from increased government investment in skills and training, ensuring the nation's burgeoning number of entrepreneurs and growing firms are given the necessary support to both help the economy in its drive towards recovery and to bring down the level of crippling debt that has been built up in years gone by.

At present, the government will be borrowing £50 billion more in 2015 than it had planned to do when first setting out its roadmap to recovery in 2010.

Investing money into industry and services would therefore be a positive way for the government to offset these increased costs.