Union leaders urge bank to cut UK interest rates

Union leaders in Britain were today pressing for a cut in interest rates to save tens of thousands of manufacturing jobs from being axed.

The Bank of England’s monetary policy committee, which was beginning a two day meeting, was urged to reduce the 4% rate by at least 0.5%.

A fresh wave of job losses yesterday, including 800 under plans to shift production of Dyson vacuum cleaners to the Far East, led to renewed calls for help for beleaguered manufacturers.

Roger Lyons, general secretary of the Amicus union, warned that 200,000 jobs will be lost by the end of the year unless action is taken to reduce pressure on the value of the pound.

‘‘The value of the pound is massacring jobs and Bank of England governor Eddie George has his finger on the trigger.

‘‘My message is, cut the rate now or we will see a Valentines Day Massacre of jobs.’’

The TUC added its weight to calls for an interest rate cut, arguing for a reduction of at least 0.25%.

TUC general secretary John Monks said: ‘‘With the continuing world recession, we need a rate cut to give us extra protection against the threat of recession in the rest of Europe.’’