THE TUC called on the Chancellor, Mr Kenneth Clarke, yesterday to

create 300,000 jobs by increasing public investment by #12 billion in

his November Budget and stabilise future public spending at 3.9% of

Gross Domestic Product.

The TUC's budget submission would most benefit the long-term

unemployed and, it claims, there would be no need for an increase in

overall spending.

The cash injection, the TUC says, would come from diverting part of

the #27 billion the Government plans to save on unemployment benefits

over the next three years and the release of the #5 billion in capital

receipts held by local authorities.

Meanwhile, the TUC has complained to the Government over further

'erosion' of its influence on joint bodies. The move follows the

appointment of Mr Peter Smith, as general secretary of the non-TUC

Association of Teachers and Lecturers, to the Equal Opportunities

Commisssion, over the TUC nominee Ms Rita Donaghy of Unison.