Almost one million jobs will be lost as a result of the Government's programme of deficit reduction – many in the very regions and industries that have already suffered most in the recession, according to a powerful report from a leading firm of accountants.
Economists at PricewaterhouseCoopers say that a further half a million jobs will be lost among private sector contractors and suppliers as a result of the Chancellor's anticipated £84bn in cuts, due to be announced in detail in eight days' time. The Office for Budget Responsibility has already acknowledged that half a million public sector jobs will go by the time the cuts programme is fully implemented, by 2015. The outlook for the UK economy, PwC says, "remains in the balance". It adds: "There is no escaping the fact that the fiscal squeeze will have a significant adverse effect on many sectors and regions."