Cameron's adviser on enterprise angers unions by saying businesses can profit from economic downturn by paying staff less Lord Young said low wage levels offers an 'excellent' opportunity TUC general secretary says advisers are 'revelling' in the squeeze Tory grandee Lord Young has enraged union leaders by telling the cabinet new businesses can profit from the economic downturn by paying staff less. David Cameron's adviser on enterprise told ministers that the low wage levels in a recession provides an 'excellent' opportunity for firms to grow. In a report to be published this week, Lord Young wrote: 'The rise in the number of businesses in recent years shows that a recession can be an excellent time to start a business. Lord Young has enraged union leaders by telling the cabinet new businesses can profit from the economic downturn Competitors who fall by the wayside enable well-run firms to expand and increase market share. Factors of production such as premises and labour can be cheaper and higher quality, meaning that return on investment can be greater. He writes that the UK's flexible labour markets make it one of the best environments for the creation of new firms, adding: 'World-renowned firms such as GE, Microsoft and Disney all started during a recession.' Speaking to The Observer, Frances O'Grady, general secretary of the TUC, said: 'The 2.5 million people still out of work will wonder what planet Lord Young is living on when he claims recessions bring economic gains.' He added that the government is failing to deal with the 'living standards crisis' and advisers like Lord Young are 'revelling' in the situation. Frances O'Grady, general secretary of the TUC, said: 'The 2.5 million people still out of work will wonder what planet Lord Young is living on' Lord Young is a former Secretary of State for Employment in the late Margaret Thatcher's government who was responsible for the privatisation of BT. He has already been forced to resign from in 2010 after claiming most Britons 'had never had it so good' during the 'so-called recession', but was reappointed 11 months later. A Downing Street spokesman told The Observer: 'Lord Young doesn't say a recession is a good time, he says it can be a good time to start a business, which is borne out by the statistics. The TUC is deliberately misrepresenting his report to suit their political agenda.