The Trades Union Congress (TUC) has called on the Bank of England to reduce interest rates in an effort to stimulate consumer spending and revitalize economic growth. This appeal comes in light of recent analysis suggesting that UK consumers are facing more significant financial hardships than their international counterparts, contributing to a lackluster economic performance. Although the Bank's monetary policy committee decided to leave borrowing costs unchanged after previously cutting rates six times since mid-2024, the TUC contends that immediate action is necessary to prevent further stagnation.

Paul Nowak, the TUC's general secretary, emphasized the importance of the Bank's role in fostering economic growth, criticizing their earlier cautious approach and advocating for a series of swift interest rate reductions this year. He believes that such measures would increase household disposable income, thereby stimulating consumer expenditure in retail and dining sectors. This boost in spending is seen as vital for enhancing consumer and business confidence, which could lead to wider economic recovery.

Official GDP data reveals a mere 0.1% expansion, raising alarms about the overall health of the UK economy. While concerns remain regarding potential inflation spurred by wage growth, the TUC prioritizes addressing weak economic growth as a more immediate issue. This position highlights the ongoing debate regarding the balance between controlling inflation and promoting sustainable economic growth, particularly in the context of current economic challenges faced by households in the UK.