By Claire West

Commenting on figures published today by the Office for National Statistics (ONS), which show that investment as a proportion of total spending has fallen to its lowest level since the 1950s, TUC General Secretary Frances O'Grady said:

'This government came into office promising to rebalance the economy - a pledge that all political parties, unions and the wider population supported after seeing the effects of the financial crash.

'But for all the Prime Minister's rhetoric of dealing with debts and winning the global race, the recovery he is championing is based on people spending more, but earning less, which can only lead to more unsustainable debt.

'Today's ONS report shows that investment levels as a proportion of spending are at their lowest levels since the 1950s, while manufacturing outside of the car industry is no stronger than it was during the depths of the recession.

'We all want the private sector to do well but whilst it's been very good at creating low-paid, low productivity jobs recently it's not investing or exporting enough.

'The government is pursuing the wrong kind of recovery as a shortcut to growth this side of the election, and we could pay the price in the long run for this short-sightedness.'