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Election pledges may lead to job cuts

Monday May 2nd, 2011

The Centre for Public Policy for Regions has released a paper ahead of the Scottish Election 2011 which looks at the Political Party manifestos and how they will shape the public sector.

The Scottish 2011 Election – the big questions that remain unanswered reveals that the relationship between efficiency savings, pay and jobs is crucial but is very little discussed.

All of the main political Parties expect to generate substantial generic efficiency savings over the next four years. Both the SNP and the Labour Party explicitly target a 2% efficiency saving across the entire £28bn Scottish Budget.

However, the paper concludes that employees will be worse off by 6-12% in terms of what their pay can purchase and jobs lost could amount to 20-25,000 (6-8%), and will be concentrated in certain areas

It states: “All of the Party Manifestos avoid tackling the thorny issue of the impact of efficiency savings on wages and jobs. The result is that there is great uncertainty around how many jobs will be lost and how much the purchasing power of wages will decline.”

To view the paper, please click here.

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