UK economy 'more dependant on financial services'

The Trades Union Congress (TUC) has warned that the UK's economy could be becoming too dependant on financial services.

This comes as HM Treasury has recommended the introduction of a range of new financial products in order to facilitate still greater engagement with the financial sector.

A report published by the TUC indicates that there were four key imbalances in the economy prior to the recession.

One of these was an over-reliance on financial services, while there were also low levels of investment, a north-south divide and widening wage inequalities.

General secretary of the TUC Brendan Barber said the impact of the damage already caused by the nation's over-reliance on the City is still being felt.

"The government has a key role to play but has so far lacked the ideas and willing to make the bold reforms needed to rebalance our economy," he commented, adding that growth alone is not enough to improve the nation's fortunes.