According to the TUC, the economic mismanagement of the previous Tor government means Britain has missed out on an enormous sum.
The news comes as the Bank of England raised interest rates for a tenth consecutive time on Thursday from 3.5% to 4%
The economy is forecast to contract in each quarter of 2023 and the first quarter of 2024 before staging a modest recovery.
Doom Loop
They claim that the failure of successive Conservative governments to recognise the negative impact of public spending cuts on the wider economy has meant Britain missed out on £400bn of growth since 2010.
They have calculated that if the government remained on the same wage and austerity measures then the lost income would be a startling £900bn.
If the UK had remained on its average pre-1979 growth rate then GDP, would be £2tn higher.
TUC general secretary, Paul Nowak, said that by cutting services and “holding down wages in favour of a wealth boom for the rich, the Conservative Party have actually created an economic ‘doom loop’”.
Nowak also said government spending cuts weakened the economy, without improving public finances. “Weaker growth has resulted in lower revenues. But rather than recognising cuts as a cause of weak growth, Conservative governments have doubled down on cuts to departmental budgets and cuts to the real pay of public sector workers.”
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