Industry bodies and trade unions have joined forces to demand the Government introduces a short-time working solution across the UK in Wednesday's Budget.

The TUC, the Work Foundation, British Chambers of Commerce (BCC), the engineering and manufacturers' organisation EEF and the Federation of Small Business (FSB) have called on the chancellor, Alistair Darling, to partially compensate workers for lost earnings if their hours have been cut, and to make a commitment to training.

The organisations claim a scheme like this would help businesses survive and keep staff in employment.

TUC general secretary Brendan Barber said: "UK unemployment is already over two million and is spiralling fast. Introducing a temporary short-term working scheme would help businesses stem the flow of job losses."

And David Frost, director general of the BCC, said: "It is absolutely crucial our economy's skills base is protected during the downturn. The loss of skills especially in manufacturing will only act to stifle growth in the long term.

"Successful initiatives from previous recessions should be revisited and applied to the present climate and a short-term working scheme is one of them."

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