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November 3, 2010    

Treasury member dismisses CIPD claim

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by Kay Murchie
”Treasury

Michael Fallon, a member of the Treasury Select Committee and the Tories’ deputy chairman, has dismissed the claim from the Chartered Institute of Personnel and Development (CIPD) that more than a million jobs will be lost due to spending cuts.

Yesterday, Dr John Philpott, CIPD chief economic adviser, said the private sector will be hit harder by the Government’s massive spending cuts than the public sector and is forecasting around 1.6 million job losses across both sectors.

Today, however, Mr Fallon said the claims were “nonsense” and argued that the think tank’s information was “less reliable than a dead octopus” - referring to Paul the “psychic” octopus, renowned for correctly predicting a host of World Cup matches.

At last month’s Spending Review, Chancellor George Osborne unveiled that around half a million public sector jobs will go by 2014.

However, the CIPD is forecasting that around 1.6 million job losses across both the public and private sectors.

The CIPD actually estimates that the total number of jobs to be lost in the public sector between 2009-10 and 2015-16 to be approximately 725,000.

The number of jobs lost in the private sector due directly and indirectly from the cuts would be 650,000, it is predicting.

It also believes that an additional quarter of a million jobs will be lost as result of the VAT increase – due 1 January 2011.

Meanwhile, the CIPD’s claims have also come under fire by the Institute of Directors (IoD), who described them as “alarmist”.

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Tags: , CIPD, , dismiss, , , Michael Fallon, , Treasury member