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?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs General

Recruitment Genius: Technical Support Specialist - Document Management

£30000 - £40000 per annum: Recruitment Genius: A leading provider of document ...

Recruitment Genius: Legal Secretary

£17000 - £17800 per annum: Recruitment Genius: This is an opportunity to work ...

Recruitment Genius: Ad Ops Manager - Up to £55K + great benefits

£45000 - £55000 per annum: Recruitment Genius: This company is a digital speci...

The Green Recruitment Company: Operations Manager - Anaerobic Digestion / Biogas

£40000 - £45000 Per Annum: The Green Recruitment Company: Job Title: Operation...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent