Budget 'will cost 240,000 jobs': University study shows the effect of government spending cuts on public sector

MORE THAN 240,000 public sector jobs will be lost as a direct consequence of government spending cuts and the freeze on state-funded pay bills, according to the University of Warwick.

A study prepared for the TUC estimates that nearly 40,000 jobs will be lost in both Greater London and the South-east alone. Other areas to be hard hit, according to Warwick, are Scotland, where 29,000 redundancies are expected; the North-west, where 27,000 jobs are predicted to go; and the West Midlands and Yorkshire and Humberside, where 21,000 face the dole.

Bill Morris, general secretary of the Transport and General Workers' Union, yesterday said that widespread industrial action was now inevitable in the wake of Kenneth Clarke's Budget, in which he indicated that public sector pay increases over the next three years must be linked with increased productivity. Public sector unions, which last year protested over a 1.5 per cent pay ceiling, are attempting to organise a one-day 'general strike' in April.

Launching a TGWU pamphlet, The Big Squeeze, in London, Mr Morris said that one in four workers would suffer either directly or indirectly from Mr Clarke's policy. In places that were heavily dependent on the public sector, spending power could be reduced by up to a third, he said.

He predicted an explosion of anger next April when tax rises feed through to wage packets and salaries are frozen. The union would seek 'a coalition of service users and service providers'.

The main flashpoints would be in local government, the civil service and the National Health Service when pay negotiations started in March.

The union's report said: 'Thousands in the private and service sectors will lose their jobs if public servants suffer pay cuts and cannot spend their money buying British goods and in locals pubs, clubs and shops.'

Mr Morris said that morale among 5.8 million public servants would be damaged, leading to big recruitment and retention problems. The policy would also have a disproportionate impact on women and part-time workers.

The TGWU pamphlet complains that the same pay restraints are not being applied in private firms, particularly for senior executives and companies that donate money to the Conservative Party.

The union will ask local authorities to convene meetings of workers and members of the public throughout next year to support public services and public servants' pay.

Jack Dromey, the union's national secretary for public services, said governments had always got away with the first year of pay restraint but had come unstuck later. 'History and this Government's growing unpopularity are on our side. The public sector pay policy is doomed to failure,' he said.

Start your day with The Independent, sign up for daily news emails
Voices
Barn owls are among species that could be affected
charity appeal
News
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Sport
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Finance Director

£65000 - £80000 per annum: Recruitment Genius: Finance Director required to jo...

Recruitment Genius: Medico-Legal Assistant

£15000 - £25000 per annum: Recruitment Genius: This is a unique opportunity fo...

Ashdown Group: (PHP / Python) - Global Media firm

£50000 per annum + 26 days holiday,pension: Ashdown Group: A highly successful...

The Jenrick Group: Quality Inspector

£27000 per annum + pension + holidays: The Jenrick Group: A Quality Technician...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas