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Britain Will Cut Fewer Public Sector Jobs Because Of Growth

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http://www.telegraph.co.uk/finance/economics/8164867/Britain-will-cut-fewer-public-sector-jobs-because-of-growth.html

The number of jobs forecast to be cut in the public sector – 490,000 – is set to be lowered by 90,000 after better than expected economic growth figures and higher tax returns.

The Office for Budget Responsibility (OBR), an independent fiscal watchdog, is expected to upgrade its growth estimate for this year and stick close to its prediction for a healthy 2.3pc rate in 2011, according to an Ernst & Young ITEM Club report to be published tomorrow.

The revisions, to be announced by the OBR's new head, Robert Chote, are likely to represent a vote of confidence in the UK economy's ability to keep pulling out of the deep slump.

Writing in today's Sunday Telegraph, Andrew Sentance of the Bank of England's Monetary Policy Committee, says that interest rates will now have to rise to control inflation.

.......

ITEM believes public finances could improve more rapidly than anticipated as the Treasury's coffers benefit from the recovery in the corporate sector.

UK tax revenues are set to surpass the OBR's original forecast for £442bn in this financial year by more than £10bn, the report said.

Tax revenues to be up by £10bn!! Great news for the Irish we've collected the money we are going to give to them.

So only 400,000 jobs need to go now in the great austerity drive where the govt actually increases spending.

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http://www.guardian.co.uk/business/2010/nov/28/100000-public-sector-jobs-set-to-win-reprieve

Around 100,000 public sector workers could see their jobs saved following the Treasury's shift away from Whitehall spending reductions to deeper cuts in welfare payments, the government's new spending watchdog is expected to reveal tomorrow.

Plans to cut almost 500,000 jobs across the public sector over the next five years could be revised to 400,000 after ministers balked at making unprecedented cuts in departmental budgets.

The forecast is believed to feature in the Office for Budget Responsibility's assessment of last month's comprehensive spending review.

The Guardian has slightly different spin on it.

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This was the interesting bit:

Writing in today's Sunday Telegraph, Andrew Sentance of the Bank of England's Monetary Policy Committee, says that interest rates will now have to rise to control inflation.

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Hang on a second, those saying we shouldn't cut the public sector have claimed that the reason is that it would deal a death blow to the general economy ... so if the economy has improved more than expected, surely that's more scope to cut public sector jobs?

Seems like every day we hear how supposed cutbacks have been repealed or lessened in scope. More and more it's looking like the government just wanted to put out the impression that they were going to do something serious about the deficit and debt (to keep the bond market calm) but are actually doing very little. Meanwhile the huge monthly deficits continue to mount - as bad as they have ever been.

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This really needs shouting more. People are in disbelief when I point this out, or get angry when I say "what cuts?"

deficit and debt are the same. My Government tells me so.

they use GDP for a reason....they can simply borrow the figures up.

Edited by Bloo Loo

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  • 153 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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