Union concern over civil service cuts, but business applauds

Tuesday, 13 July 2004 12:00 AM

The Chancellor's announcement that he is seeking to cut 104,000 civil service jobs has been greeted with dismay from union leaders.

In his Comprehensive Spending Review (CSR) Gordon Brown announced funding increases for the public services, with education and health being the big winners. However, he also demanded efficiency savings across a number of departments and said he would be seeking to cut around 104,000 back room and administrative jobs.

UNISON's general secretary, Dave Prentis, said: ""What a shame that the Chancellor should spoil a good news story about high investment in our public services with a petty attack on sick leave and announcements about so many job cuts.

"It's not in the Government's interests to demoralise the very workforce who are expected to improve our public services. These issues should be dealt with through established procedures and not announced through the media which add to people's insecurity.

"There is a big public service agenda implicit in the review. It is difficult to see how the Chancellor can manage that by cutting so many jobs - that is more to do with trying to steal the Tories' clothes than looking at what is important to provide high quality public services."

Kevin Curran, head of the GMB, was slightly more moderate, saying: "We again welcome the Government's commitment to extra spending in health and education.

"But we are alarmed to learn of the Chancellor's plans to cut well over 80,000 jobs from the civil service. Cuts on this scale are likely to have an impact on front line public services. That is something we would oppose."

T&G general secretary, Tony Woodley, echoed the warnings, saying: "Labour will be judged at the next election on their delivery of public services after two terms in power. The Government are right to continue investment in public services but that progress could be undermined by the dramatic civil service cuts. The savings the Chancellor hopes to achieve are very extensive and we will be examining closely the impact of the cutbacks on our members in public services."

The civil service union, the PCS, understandably reacted strongest against the proposed cuts. Its general secretary, Mark Serwotka warned that the cuts would cause "carnage" and that industrial action could not be ruled out.

The Confederation of British Industry (CBI) however firmly welcomed the plans. Its director general, Digby Jones, said: "Mr Brown has taken a big step in the right direction. Companies will breathe a sigh of relief that growth in public sector investment is not going to become profligate pre-election spending.

"Business applauds a radical and courageous efficiency plan that will involve implementing decisions that have been ducked for far too long.

"But while this is encouraging, we have heard big promises before. Business will adopt a we'll-believe-it-when-we-see-it attitude. Mr Brown still has to face down vested interests in the trade unions and civil service. He must introduce a credible system for measuring efficiency transparently if business confidence is to be maintained."

Mr Jones added: "We should remember that most of the benefit of civil service efficiency savings will not come through until the latter part of the spending period, although much of the saving will be spent up front. This means efficiency savings must be delivered in full, as well as sustained growth in the economy."

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