If the Government cuts public-sector spending by 10%, 700,000 employees will lose their jobs, the TUC has warned.

According to the TUC, if the Bank of England's stimulus programme were to be replaced with spending cuts, 2.9% of the workforce would lose their jobs, with unemployment levels in Liverpool Leicester and Middlesbrough seeing unemployment levels increasing by more than 40%.

The prime minister, Gordon Brown, will address the TUC Congress in Liverpool this afternoon and he is expected to use the word "cuts" when addressing union leaders.

But Brendan Barber, TUC general secretary, said: "Public spending cuts would provoke a double-quick, double-dip recession. Unemployment could exceed four million and it would take many years before there was any chance of returning to anything like full employment.

"A double-dip recession would not just be deeper - but also longer. Prolonged mass unemployment would not just do economic damage, but would have terrible social effects. I don't think Britain is broken, but this would be one way to break it."