Articles - The public sector recession is now in full swing

 Paul Cleal, PwC partner and head of Government & Public Sector, said:

 “The public sector recession is now in full swing. Public sector employees will feel the squeeze further next year after today’s announcement on the 1% cap on public sector pay rises."

 “As we expected, public sector pay restraint and departmental savings will continue beyond the next election due to the impact on the UK public sector of the greater than expected debt burden recognised by the Chancellor today. Public servants will continue to be asked to deliver more for less and, with the growing pressure on health and care services from an ageing population, this represents a long term double whammy which requires real and lasting change."

 “To bring about lasting change, Government will have to push ahead with its ambitious plans to open up the delivery of public services to the private sector and social enterprise."

 “The figures announced today underline the reality of the situation facing the country, that the money to pay for pensions, services and benefits must come from somewhere. To get public support, the government must make it a priority to communicate this reality to everyone, including public sector employees and those who rely on public services.”