Public sector job cuts to be offset by 2018
Public sector job cuts will be offset by a rise in private sector jobs by 2018, according to analysis by PwC ahead of next week’s spending review.
Living with Austerity examines the state of the public finances and the options the chancellor has for spending in 2015/16. It shows that although public sector employment will fall by nearly 900,000 by 2018, 1.7m jobs will be created in the private sector over this time.
The report also shows that the focus of spending cuts is switching from capital spending to departmental spending. Departments not protected by ring-fencing face around £8.5bn real cuts in 2015/16.
Paul Cleal, head of government and public sector at PwC, said: 'The fiscal situation remains very challenging, and there is little room for manoeuvre to deliver the latest round of spending cuts without imposing significant additional pain on unprotected departmental areas. Despite an expected gradual recovery in the UK economy, it’s clear there will be significant doses of austerity extending well into the next parliament.
'There is an appetite for new ideas – the Single Local Growth Fund and Local Growth Deals, for example, aim to support regional growth and competitiveness. The Spending Review should set out more detail on these initiatives, which could represent a potentially seismic shift in the decentralisation of economic power and place more responsibility with business (through Local Enterprise Partnerships) and local authorities to deliver growth on the ground.'
This sounds a bit simplistic as the reduction of public expenditure in part determines the prospects for the private sector, Whatever, these figures imply unemployment of 1.7M in 2018 (unless many more under 65's declare themselves economically inactive) which is a stunning indictment of government policies and of 21st century free enterprise.Patrick Newman, ex local government, Stevenage, Added: Monday, 24 June 2013 09:29 AM
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