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http://www.thisismoney.co.uk/news/article.html?in_article_id=505969&in_page_id=2

One in eight public sector jobs 'face axe'

By Becky Barrow and James Chapman

10 June 2010

Nearly one in eight public sector workers will lose their jobs over the next five years as the Government tackles Britain's record deficit, experts warn today.

The respected Chartered Institute of Personnel and Development claims a massive 725,000 state jobs will be axed.

Chief economic adviser Dr John Philpott says state workers, who currently account for one in five of the workforce, should brace themselves for compulsory redundancies, vacancies left unfilled and recruitment freezes.

Many, he says, face little prospect of finding another job with a bleak prediction that unemployment will soar to three million.

Dr Philpott will use a speech in London today to warn that unemployment will be high for the next five years. Tough fiscal medicine is 'unavoidable', he will say, but will insist tax rises, not spending cuts, should be the focus.

'Deficit reduction will slow an already anaemic recovery and, in the short run, be bad for jobs in both the private and public sectors,' he will say.

'UK public sector job losses of around 725,000 are expected.'

State workers can also expect to be hit by pay cuts, or paltry pay rises at best. And private sector workers also face five years of pain, with little or no chance of a pay rise to keep up with the rising cost of living.

Treasury sources rejected the CIPD's warnings. A spokesman said: 'Unemployment is currently rising. It is clear that if we do not reduce the deficit we cannot secure the recovery which will undermine job creation.'

Meanwhile, business leaders have backed the Coalition's aim of tackling the UK's unprecedented deficit with £4 in spending cuts for every £1 in tax hikes.

In a letter to Chancellor George Osborne ahead of the emergency Budget on June 22, the Confederation of British Industry agreed money had to be saved through job cuts and shared back office functions in the public sector.

CBI deputy director-general John Cridland said: 'A radical re-engineering of public services is a must if damaging tax rises are to be avoided. Only an effective cost reduction strategy can safeguard future growth.'

But the group reiterated 'major concerns' over Government proposals to hike capital gains tax to levels similar to income tax.

In the Commons, the Prime Minister, who this week said public sector workers had been unfairly 'insulated' from the impact of the recession, insisted tough measures were vital.

He said: 'If we do not take action to deal with the deficit, we will pay over £70bn, not repaying the debt, but just on debt interest in five years' time.

'Think about it like this: all the revenue gleaned from corporation tax - all the tax on every company making a profit in our country - does not even pay for half the debt interest bill.

'That is the mess that we have been left in, but this Government has the courage to deal with it.'

Sounds like stagflation to me. Rising taxes to make inflation positive to pay for the 3m unemployed, while the jobs market provides no wage growth. And CGT left alone - so people can sell their houses to trade down and maintain some kind of standard of living.

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http://www.thisismoney.co.uk/news/article.html?in_article_id=505969&in_page_id=2

One in eight public sector jobs 'face axe'

By Becky Barrow and James Chapman

10 June 2010

Sounds like stagflation to me. Rising taxes to make inflation positive to pay for the 3m unemployed, while the jobs market provides no wage growth. And CGT left alone - so people can sell their houses to trade down and maintain some kind of standard of living.

Shame but absolutely neccesssary.

Shame we didn't have Keynsians in charge for the last few decades as we wouldn't be in this mess.

Government debt would be very low and spending would now be increasing.

Financial regulation would have been very tight and would now be loosening. Not the other way round.

Edited by barry

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It has always been like this in the public sector, feast or famine.

The worry is that shrinking the economy is the only game Libcon can play.

Some thoughts on wealth and job creation would be welcome, but they don't seem able to do that.

Good luck jobwise.

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It has always been like this in the public sector, feast or famine.

The worry is that shrinking the economy is the only game Libcon can play.

Some thoughts on wealth and job creation would be welcome, but they don't seem able to do that.

Good luck jobwise.

you're an idiot. that's my view on wealth creation.

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It has always been like this in the public sector, feast or famine.

The worry is that shrinking the economy is the only game Libcon can play.

Some thoughts on wealth and job creation would be welcome, but they don't seem able to do that.

Good luck jobwise.

Governments can't create wealth.

All they can do is create the correct environment which usually means less interference and getting out of the way as much as possible.

As soon as politician thinks he knows how to create wealth or jobs you cand be sure there'll be money wasted on a massive scale.

Edited by barry

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It has always been like this in the public sector, feast or famine.

Yep, Labour always bankrupts the country and leaves someone else to sort it out. :rolleyes:

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Shame but absolutely neccesssary.

Shame we didn't have Keynsians in charge for the last few decades as we wouldn't be in this mess.

Government debt would be very low and spending would now be increasing.

Financial regulation would have been very tight and would now be loosening. Not the other way round.

We did have them in charge. However - they just didn't bother to read leaflet A and instead went straight to leaflet B as it sounded better.

It is a shame though. Without the stupid bubble and massive personal/public debt I actually think the UK would come out of this all very well.

Oh well.

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http://www.thisismoney.co.uk/news/article.html?in_article_id=505969&in_page_id=2

One in eight public sector jobs 'face axe'

By Becky Barrow and James Chapman

10 June 2010

Sounds like stagflation to me. Rising taxes to make inflation positive to pay for the 3m unemployed, while the jobs market provides no wage growth. And CGT left alone - so people can sell their houses to trade down and maintain some kind of standard of living.

sounds like 1975 - 1985 to me. You know when wages doubled.

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Any ideals on how i can make sure i am on the list?

i have a few possibilities so far

1. Punch the headteacher on the nose

2. wear a BNP Tshirt to work

3

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We did have them in charge. However - they just didn't bother to read leaflet A and instead went straight to leaflet B as it sounded better.

It is a shame though. Without the stupid bubble and massive personal/public debt I actually think the UK would come out of this all very well.

Oh well.

I thought they were into Endogenous Growth Theory. This gave them justification to increase spending - it wasn't really spending - it was investing.

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Any ideals on how i can make sure i am on the list?

i have a few possibilities so far

1. Punch the headteacher on the nose

2. wear a BNP Tshirt to work

3

Carry a Daily Telegraph around with you while mentioning how wonderful the hunt was at the weekend.

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Shame but absolutely neccesssary.

Shame we didn't have Keynsians in charge for the last few decades as we wouldn't be in this mess.

Government debt would be very low and spending would now be increasing.

Financial regulation would have been very tight and would now be loosening. Not the other way round.

Was that sarcasm or are you being silly?

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And CGT left alone - so people can sell their houses to trade down and maintain some kind of standard of living.

I don't understand this.

How does CGT left alone help people trade down? Do you mean CGT as an HPI enhancing measures? What about the buyers of overpriced property in that case?

And if the idea is for everyone or a majority to trade down, who do they sell to?

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Yep, Labour always bankrupts the country and leaves someone else to sort it out. :rolleyes:

It's quaint how people on here think there is a difference be the labour party and the tories.

There is not, other than one wears a blue tie, one a red.

In the 2005 election, labour ran with the manifesto the tories had when they lost power.

The parties are meaningless, you need to look at who's pulling the strings.

The benefits culture and rising public sector employment are merely a reaction to high house prices. Either party would have done the same thing. As high house prices make work un-viable, you either have to pay people off or law and order will break down.

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Carry a Daily Telegraph around with you while mentioning how wonderful the hunt was at the weekend.

:lol:

and say 'Gosh' all the time.

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I don't understand this.

How does CGT left alone help people trade down? Do you mean CGT as an HPI enhancing measures? What about the buyers of overpriced property in that case?

And if the idea is for everyone or a majority to trade down, who do they sell to?

I mean CGT at 18% to be able to sell up and trade down, for those that have significant equity. I'm not saying it'll work. And I'm not saying there'll be HPI either - just less tax on the asset wealth you already have. I think people need to know property HAS been a good investment, as they have been taxed to death on it already in the form of council tax.

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Shame but absolutely neccesssary.

Shame we didn't have Keynsians in charge for the last few decades as we wouldn't be in this mess.

Government debt would be very low and spending would now be increasing.

Financial regulation would have been very tight and would now be loosening. Not the other way round.

Excellent post.

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We did have them in charge. However - they just didn't bother to read leaflet A and instead went straight to leaflet B as it sounded better.

A world view that includes the conviction that you've abolished boom & bust is not compatible with Keynseianism (or any other model with the business cycle at its core).

New Labour were NEVER Keynesian. They tried to cover themselves with some tattered Keynesian offcuts after their New Economic Paradigm had blown up in their faces, but that's not the same thing.

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http://www.thisismoney.co.uk/news/article.html?in_article_id=505969&in_page_id=2

One in eight public sector jobs 'face axe'

By Becky Barrow and James Chapman

10 June 2010

Sounds like stagflation to me. Rising taxes to make inflation positive to pay for the 3m unemployed, while the jobs market provides no wage growth. And CGT left alone - so people can sell their houses to trade down and maintain some kind of standard of living.

The headline is misleading. The government won't need to do compulsory redundancies. As Cameron has said, around 400,000 people leave the public sector every year, on average. Or 2 million in 5 years. To reduce by 725,000 positions over the next 5 years they just need a (partial) hiring freeze.

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The headline is misleading. The government won't need to do compulsory redundancies. As Cameron has said, around 400,000 people leave the public sector every year, on average. Or 2 million in 5 years. To reduce by 725,000 positions over the next 5 years they just need a (partial) hiring freeze.

But then the better ones will go. I would have thought its an ideal opportunity for a clearout.

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Sure your not 1 in ten?

Ah............Yes 1981, Toxeth riots...........strikes...house price collaspe.....................Ah yes the good old days.............

Mike

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Governments can't create wealth.

All they can do is create the correct environment which usually means less interference and getting out of the way as much as possible.

As soon as politician thinks he knows how to create wealth or jobs you cand be sure there'll be money wasted on a massive scale.

Almost every scientific discovery has come from publically funded research. No company could afford to invest the money into "what if" science.

As one example:

The MRC and its technology transfer company, MRC Technology (MRCT), work closely with industry. We have been involved in the creation of 17 start-up companies, including two of the UK’s biggest biotechnology companies UCB-Celltech and Cambridge Antibody Technology (CAT). Since 1998, cumulative income arising from the licensing of MRC intellectual property to industry has amounted to approximately £439 million. MRC inventions have had major impacts. For example, MRC research stemming from the 1970s resulted in the development of monoclonal antibodies suitable for therapeutic use. This has been the foundation of the global monoclonal antibody business, which has more than £30 billion in sales annually.

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But then the better ones will go. I would have thought its an ideal opportunity for a clearout.

Indeed.

Not fair on the newly graduated either. A lot of them start off in public service and move on.

Much better clear the deadwood out.

People who've been in public service for years should be grateful for all the employment they've been given, not resentful that they

are sacked.

They can always compete in the private sector like everyone else.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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