The TUC today (21 March) set out its alternative to the government's economic programme, on the eve of Wednesday's Budget and Saturday's March for the Alternative. The TUC's budget submission calls for:

• a more flexible deficit reduction timetable
• fairer taxation
• a well-funded green investment bank to encourage jobs and sustainable growth.

The TUC calls for the government to heed the warning signs of a faltering recovery and rethink its plans for deep, early spending cuts.

Rather than using the budget as a political project to roll back the state, the TUC wants the Chancellor to focus on the key economic issues facing the country – rising unemployment, falling living standards and low growth prospects – all of which threaten his deficit reduction plans.

Government action so far – early spending cuts, scrapping vital job support and tax rises that hit those on low to middle incomes the hardest – has already weakened the recovery and sticking to this course will further undermine our chances of sustainable growth, the TUC says.

The Chancellor should use the budget to boost jobs through well-funded employment schemes and encourage growth through a green investment bank and an ambitious industrial strategy, says the TUC.

It believes that a crackdown on tax avoidance by multi-national companies and the super-rich could provide the public funds needed for a green bank to operate.

"On Wednesday the Chancellor should admit that changing economic conditions, partly as a result of his own policies but also a consequence of wider economic unrest, require a change of course," said TUC general secretary Brendan Barber.

"We want to see a plan B that ends growth sapping spending cuts and invests in getting people back into work and our economy motoring again.

"But employment and investment programmes cannot be done on the cheap. The government should start making those who benefitted most from the boom pay their fair share towards helping the recovery.

"The message from the tens of thousands of people marching in central London this Saturday will be that there is an economic alternative and the government should change course before it's too late."

Final arrangements for Prospect members attending the march are now available.