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TUC calls for improved redundancy-related benefits

With the chancellor Alistair Darling expected to announce the Governments pre-budget report next week, the TUC has today called for more funding for redundancy pay and skills.

TUC general secretary Brendan Barber called for an increase in redundancy benefits, statutory redundancy pay and the amount of redundancy pay that can be taken tax-free. He also called for an extra £10,000 tax-free allowance for redundancy pay that is spent on training.

As well as tax cuts for those on middle incomes to support the failing economy, the TUC is pushing for an industrial strategy "which supports sectors that are already out-performing the rest of the economy and have the potential to do better" and well as more government investment in skills.

Barber said: "The Government has shown the rest of the world the way how to rescue the financial system. Now it must show the same commitment to making the recession as short and as shallow as possible.

"This requires not just a big boost to the economy, but a smart one. It should give extra resources to medium and low-paid workers and the unemployed who are most likely to spend extra cash. And it should boost public spending in ways that will both produce immediate economic benefits but also make the UK a fairer and greener place."