CRISIS-hit manufacturing will not recover until next year, a new report has predicted.
The TUC called for a £900m package of measures in the next 12 months to help rebuild the sector.
A report by the union organisation warned that the productivity gap had worsened over the last few years, with output per worker 50 per cent lower in the UK compared with the US.
US, German and French firms now invested far more in research and development than UK firms, the report said.
TUC general secretary John Monks said the April Budget should begin the job of rebuilding manufacturing.
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