Amicus, the union for skilled and professional people, today warned the Monetary Policy Committee (MPC) of the Bank of England to cut the interest rate by at least 1/2% to stem the tide of job losses in manufacturing.
In October Amicus predicted 50,000 job cuts in the manufacturing industry due to pressure on exports because of the value of the pound, but the union expects this figure to double over the next three months.
“The MPC must cut the interest rate by at least 1/2% this month to reduce the flow of jobs out of the manufacturing export sectors. The UK rate is still too high compared to the US and the Euro Zone,” said Roger Lyons, Amicus Joint General secretary.
Recent economic indicators reveal a continued decline in manufacturing output since 2001 and a growing gap in the house prices between London and the south east and the north of England and Scotland. According to Amicus, the MPC must cut the interest rate or risk permanently excluding manufacturing regions from economic affluence.
Amicus General Secretary Roger Lyons said: “The jobs haemorrhage in manufacturing is creating a chasm between the relatively prosperous south east and the other regions of the UK.’
“The government’s pledge to create full employment in every region is being undermined by the MPC’s caution,’ added Lyons. ‘Tinkering with 1/4% cuts has done nothing to cushion the blow of the overvalued pound and the downturn in the US economy.’
Lyons concluded: “The MPC must be bold or the people of the manufacturing regions of the UK will become second class citizens in their own country.”