So, this morning the Guardian claims to have seen a leaked treasury document that shows that the governments public spending cuts will increase unemployment by 1.3 million.
The full article is here:
http://gu.com/p/2t3dd/tw
It's not a surprise. How can you cut spending and not have more unemployment. In addition increasing the VAT rate to 20% is also going to have an effect on jobs in the retail sector. Demand will fall, without question, and jobs will go.
The treasury believes that the private sector will take up the slack and create 2.5m jobs over 5 years. I think they need to wake up. The private sector is very worried about going back into recession and when we come out will need to stabalise itself. There will be no 2.5m jobs created.
I'm not sure who the government ministers are talking to, but they obviously are the wrong ones.
If prove be needed that the budget was harsher than it should have been, then these figures are it.
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