I read in the paper the other day that the Government cuts will result in the loss of 1.6 million jobs. The Chartered Institute of Personnel and Development (CIPD) have warned that the recent cuts in public spending allied with the rising rate of VAT is going to cut the workforce to this extent across the UK economy by 2015/2016.
It has to be said that this is the biggest estimate yet of the spending cuts announced recently by the Coalition Government. There are other estimates out there but the CIPD are of the view that the VAT rise has not been taken into account when others have analysed the cuts.
I am not very good at counting, that’s why I became a lawyer and not an accountant, so I am glad the CIPD have given estimates. They reckon that the public sector will lose 725,000 jobs, this is a lot more than the 490,000 figure estimated by the Comprehensive Spending Review. More disconcertingly, the CIPD also predict that 900,000 private sector jobs will go and qualify that by saying that almost two thirds will be as a result of the spending cuts and the rest will be the resultant effect of the VAT increase. The worrying thing about all of this is that the unemployment figure is only going to increase. The only way that the trend can be bucked is by the creation of 320,000 private sector jobs being created annually by 2015/2016.
These figures make grim reading, however, as a no win no fee employment law specialist, I am on hand to assist and you should call me on 0800 0891331 for legal advice.