Published: 5th Dec 2011

We’ve had the one of the warmest autumns on record, yet the chancellor’s autumn statement sent a chill through everyone, particularly those in the public sector. There was widespread concern that the deficit plan clearly hasn’t worked – with growth downgraded yet again for 2012 from 2.5% to just 0.7%, with borrowing set to be so much worse than anticipated, and senior economists casting doubt over whether the chancellor will meet his revised target of eliminating the structural deficit by 2016-17. While it wasn’t quite a Plan B, nonetheless, the chancellor had to show his commitment to growth, and there was some interesting news in the statement for local government and for capital transport projects. But first came the bleak news for the public sector, with real cuts to salaries and wages, which will only have hardened the resolve of those going on strike the following day. The 1% cap … (To read the full article, subscribe below)