A UK body has warned that public sector job cuts make no sense and will do little for the economy.
Carolyn Jones, director of the Institute of Employment Rights, stressed that a proposed pay freeze may also lead to increased inequality.
“Lower pay means less spending which puts the jobs of others at risk. It’s a vicious downward spiral that should be avoided,” she said.
Ms Jones also indicated that cuts could actually “stimulate resentment” rather than boost the UK economy.
This follows calls from the Confederation of British Industry (CBI) for a two-year pay freeze across the public sector and the organisation stressed the need for a “re-engineering” of services, including health and social care.
Furthermore, the CBI is urging the government to accompany cuts with measures to help the private sector grow in the coming years.
Ms Jones, on the other hand, believes a more sensible ploy to help service the national debt would be taxation on boardroom figures rather than punishing the lowest paid.
By Ross George
