Cuts in Public Spending do NOT have to mean cuts in Public Services

(By Richard Holway 4.00pm 14th June 09) Ever since I wrote the AnalystViews on the Effect of a Conservative Government on UK SITS, the discussion about public sector spending cuts over the next few years have been headline news.

Every report seems to equate reduced public spending with reduced services. Last week the ONS published a report which showed that the average public sector worker’s output had reduced by 3.2% since 1998 But the average worker in the private (or what the ONS calls the ‘market sector’) had increased by 22.8% in the same period.

David Smith in the Sunday times – See Tories must tackle public-sector blight – said “if public sector productivity had matched the private sector we could have the same level of public service but for almost £100b less than the £670b the government intends to spend this year”.

I’m not for one moment suggesting it will be easy, but it can be done.