UK unemployment

Union leaders have warned that cutting public spending would provoke a "double dip" recession, raise unemployment to over four million and spark the threat of mass industrial action.

One senior official also reminded politicians that the last time the UK suffered "slash and burn" economics, there were riots on the streets.

The TUC has published a new report, analysing the effects of possible public spending cuts on the 25 local authorities with the highest levels of unemployment. The study found that areas such as Liverpool, Leicester and Middlesbrough would suffer 40 per cent increases in unemployment.

It also warned that a ten per cent cut in public sector staff would lead to 700,000 workers being laid off.