Commenting on today’s statistics confirming that the UK entered technical recession in the last quarter of 2008, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said:
“That these statistics were so widely anticipated does not diminish their impact. Coming on the back of employment figures showing a third consecutive quarter of rising unemployment, workers in Scotland will be increasingly fearful over what 2009 has in store.
“Scotland is still struggling to deal with the persistent economic inactivity resulting from the recessions of the 1980s and 1990s and the disastrous labour market policies which accompanied them. It is absolutely essential that the same mistakes are not repeated.
“Therefore, Government at all levels must redouble efforts both to mitigate the length and depth of recession and to support those it has hit hardest.
“In the short term it is essential that banks start lending again. The Government must carefully monitor the impact of the package of measures announced this week and, if necessary, act again. Full nationalisation is increasingly looking like the most appropriate option.
“The Treasury must also start thinking about further stimulus measures for Budget 2009 including targeted tax cuts for the low paid and increases in JSA and statutory redundancy pay.
“The Scottish Government must quickly build on recent announcements to establish a substantial and coherent package of support for those have lost their jobs and those at risk of redundancy.
“It is also essential that all politicians measure their responses to recession very carefully in order to maintain social cohesion and not stoke the flames of racial resentment”.
ENDS
For further information contact
Stephen Boyd Assistant Secretary STUC 0141 337 8100