Substantial public sector job losses desperately needed

IEA responds to job cuts forecast by Treasury

Responding to reports of a leaked Treasury forecast, Mark Littlewood, Director General of the Institute of Economic Affairs, said:

“Reports of a Treasury forecast showing 600,000 public sector job losses should not be surprising. To make the scale of cuts that are necessary there must be cuts to personnel including those involved in so-called ‘frontline’ services. The coalition needs to be honest about this.”

“If radical reform of public service delivery were to be undertaken then an even greater number of job losses would be required in the short term. This would enable a complete restructuring of the relationship between those providing services and those receiving them.”

“According to the reports of the Treasury forecast the job losses will be offset by 2015 thanks to the creation of 2.5 million private sector jobs. But job creation in the private sector could be jeopardised if the government fails to control borrowing and fails to maintain business confidence with prudent tax and spending policies. The government should therefore administer the serious short-term changes that the economy needs.”

To arrange an interview with Mark Littlewood, IEA Director General or with Philip Booth, IEA Editorial and Programme Director, please contact Ruth Porter, Communications Manager, 077 5171 7781, 020 7799 8900, rporter@iea.org.uk.