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Economic recovery at risk of ‘lurching from one crisis to another’ without investment, TUC and Labour warn

LATEST financial figures show that Britain’s economic recovery is at risk of “lurching from one crisis to another” without proper investment, Labour and the TUC warned today.

Britain’s gross domestic product (GDP) rose 0.4 per cent between July and August in the first full month after all Covid-19 restrictions ended in England, the Office for National Statistics said.

The rise means that the economy is now only 0.8 per cent smaller than it was before the pandemic, but the increase is lower than expected.

TUC general secretary Frances O’Grady warned that Britain’s recovery from the pandemic remains fragile and urged ministers to “get around the table” with unions and employers to come up with a “proper, long-term economic plan.”

She said: “The energy crisis and labour shortages biting across Britain show that we can’t leave everything to the market — active government has a key role to play.

“[Chancellor Rishi Sunak] must use this month’s spending review to provide extra support for jobs and struggling businesses.”

Ms O’Grady said that the TUC is calling for a permanent short-time working scheme to help deal with periods of disruption along with urgent investment to get Britain ready for the transition to net-zero and to stop good, skilled jobs being lost abroad.

“Without action and leadership from ministers we risk lurching from one crisis to another,” she said.

Shadow chief secretary to the Treasury Bridget Phillipson said that the GDP figures prove that Britain’s economic recovery is at risk.

The Labour MP said: “The upcoming Budget provides a last-chance opportunity to secure the recovery through winter.

“But at the moment we’re simply faced with a chancellor missing in action.”­­

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