By Jason Theodorou

Proposed government spending cuts will weaken the economy, lead to job losses in the thousands, and leaving a deeper deficit - according to a new report published by the Trade Union Congress today.

"All Pain, No Gain: The Case Against Cuts" looks at economies that have made severe spending cuts in the past, including Britain in the 1980s and Canada in the 1990s. The report finds that the end result for the UK in 2010 will be damaged public services, rising unemployment and increased suffering for the most vulnerable.

The report argues that a harsh round of spending cuts will harm the economy, causing the Government's tax receipts to fall as companies pay less tax on their profits and newly unemployed public servants no longer pay income tax.

In place of the spending cuts, the TUC advises the government to work for an international growth package - raising taxes for those most able to pay - and abandon a timetable stating that the deficit must be halved by 2014.

Brendan Barber, general secretary of the TUC, said: 'The speed and severity of UK cuts is more likely to spook the markets than please them as a double-dip recession looms and Europe embraces the self-harm of deficit fetishism'.

'Business confidence, order books and consumer demand is all very brittle... Voters did not vote for cuts in health, education, pensions, the police and for privatising the road under their feet'.

The report is critical of government plans to cut human resources, finance and administrative staff in the public sector, as these cuts are expected to make life much harder and more stressful for 'those on the frontline'.

Chancellor George Osborne will detail the government's financial plans in the emergency Budget, to be presented on June 22.


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