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DE
Bloated public sector growth leaves tax rises all but inevitable
['Amy Ingham', 'Amy Is A Newly Qualified Journalist Specialising In Business Journalism At Business Matters With Responsibility For News Content For What Is Now The Uk S Largest Print', 'Online Source Of Current Business News.']
Business Matters
The UK public sector has swelled to its largest size in over a decade, even as the wider economy struggles with a hiring slowdown.
Figures from the Office for National Statistics (ONS) show almost 6.2 million people now work in the public sector – the highest since 2011 and up 75,000 in the past year.
Economists warn that the combination of a growing public payroll and persistently low productivity leaves Reeves with little choice but to tighten the tax burden, already heading towards a post-war high.
Despite employing nearly 600,000 more people since the pandemic, the public sector is delivering less.
Andrew Goodwin, chief UK economist at Oxford Economics, said: “If we’re thinking about how the public finances are put back on an even keel, it is imperative the government improves public sector productivity.
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