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
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
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: Sales Executive - OTE £45,000

£18000 - £45000 per annum: Recruitment Genius: A Sales Executive is required t...

Recruitment Genius: Test Development Engineer

£35000 - £40000 per annum: Recruitment Genius: Are you inspired to bring new a...

Recruitment Genius: Trainee Motor Engineer

£14000 - £18000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Technical Administrator

£15000 - £18000 per annum: Recruitment Genius: This company are a world leadin...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral