BRITAIN is at risk of higher unemployment and 80,000 job losses in manufacturing if the Bank of England (BoE) fails to reduce interest rates early, the TUC is warning in a new report just out. The union s report, Cut or Bust, says that the economy could h

BRITAIN is at risk of higher unemployment and 80,000 job losses in manufacturing if the Bank of England (BoE) fails to reduce interest rates early, the TUC is warning in a new report just out.

The union's report, Cut or Bust, says that the economy could hit the rocks if the BoE doesn't take prompt action.

It says one of the warning signs was the small increase in the jobless rate at the end of last year.

TUC chief economist Ian Brinkley said: "The UK economy has weathered global economic squalls comparatively well and is on track to do better in the year ahead.

"But this could go wrong if the Bank fails to cut interest rates. The balance of risk is now of downturn, not inflation.