The TUC chief John Monks has called on bosses to consider redundancy as the last option in the coming economic downturn.

He said that too many companies were announcing unnecessary job losses.

"Employers should not bow to the demands of the City and should treat redundancies as the last rather than the first option. With manufacturing already in recession, our economy is heavily reliant on continued consumer spending and a stable labour market.'' said Monks.

Speaking as the Bank of England considers a further cut in interest rates he called for a further quarter point reduction.

Monks said Britain would survive the economic downturn provided business chiefs kept their nerve.