26th May 2010

Authority warns against public sector contractor cull

The government is being urged not to begin its £6 billion public sector cuts by axing all contract and freelance workers.

Representatives of the Recruitment and Employment Confederation (REC) have said many of the non-staff contract workers play critical, front-line roles and simply eliminating them with the first swing of the scythe could damage the economic recovery.

REC's director of external relations, Tom Hadley, said contract workers were not people who were just hired on whims, and it was impossible to let them go easily either.

“The need to reduce public expenditure is a given, but knee-jerk cuts would result in an unravelling of front line services and put more stress on our fragile jobs market," he warned, emphasizing that the flexibility freelancers provide can be very helpful for employers.

"Challenging pre-conceived ideas and off-the-peg solutions will play a key role in achieving sustainable reform as well as lasting improvements in productivity and innovation."

The plan to cut £6 billion from the public sector budget has received the endorsement of Mervyn King, the Governor of the Bank of England, who has said it is a clear demonstration of the new government's commitment to addressing the national deficit. Rising inflation – which reached 3.4 per cent in March – also suggest the cutting will begin sooner rather than later.