TUC: Tax cuts would kickstart economy

Cutting taxes and increasing public spending would help to kickstart the economy, according to the Trades Union Congress (TUC).

The group has claimed that Chancellor Alistair Darling should look to reduce tax payments for low and middle income earners at next week's Pre-Budget statement.

Officials from the TUC also believe that the government could support households through the economic downturn by suspending home repossessions and improving redundancy benefits.

Brendan Barber, general secretary of the TUC, commented: "[Government] should give extra resources to medium and low paid workers and the unemployed, who are most likely to spend extra cash."

He added that the government should look to boost public spending in ways which will produce economic benefits and make the UK a fairer place to do business.

Earlier in the week, chief Labour whip Nick Brown told the Northern Echo that the party should repeal corporate tax on disused commercial buildings.