STUC calls for 'urgent rethink'

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The Labour Party's economic plans to implement deep cuts in public service spending need "urgent re-thinking", according to the STUC.

The Scottish Trades Union Congress agreed a statement on the second day of its Dundee conference.

It said the UK government should have been bolder in its response to the economic crisis, with a bigger spending stimulus and with pay and tax reform.

However, it said voting for the Conservatives would "spell disaster".

The STUC said "current plans to address the government's deficit through public spending cuts requires urgent re-thinking".

It also criticised the Labour government as one of those around the world that failed to understand the effect of deregulating markets.

The strong criticism is unusual from trade unions so close to a hard-fought election.

Scrap heap

The STUC is not aligned to Labour, but its most powerful member unions are. It does not endorse a Labour vote, but there is stronger criticism of its rivals.

The statement called for trade union members to use their votes, making it a priority that Conservatives do not gain power.

It said that would be disastrous for Scotland and the UK, risking a return to recession, and would "cause massive destruction of public services, and consign another generation to the unemployment scrap heap".

The STUC general council statement praised both the Liberal Democrats and the Scottish National Party for opposing an immediate end to the fiscal stimulus.

But it said the Lib Dem policies "continue to fail to promote a consistent vision or a coherent economic alternative".

It added the SNP "has tried and failed to face in two directions at once, insisting on high tax, high regulation solutions from Westminster government whilst pursuing a low tax and business centric strategy where policy is devolved".