Bung the public sector unions £25bn in total pay increases, expect some improvements in overall productivity – yes?
NO – no ‘kin chance.
An improved productivity agreement was never included in the ‘bung’.
Latest on public sector productivity:
Public sector productivity has dropped at its fastest rate in nearly three years.
Data from the Office for National Statistics (ONS) showed total productivity at state-owned bodies fell by 0.7 per cent year on year in the three months to June, marking the sharpest decline since the final quarter of 2022.
Healthcare productivity fell by some 1.5 per cent over the same period, dragging down the overall figure, despite the Chancellor announcing the largest settlement for the health service in over a decade at the last Budget.
Not really surprising about the bloated health service though, is it? All that money swallowed up by the 23% employer pension contributions, as well as the salary increases. At the same time, despite generous money thrown at it, productivity plummets.
Welfare reforms kicked down the road….again, whilst the millions on benefits, some totally undeserving, get their freebies the working population, businesses, etc pick up the tab, as HMG’s deficit grows, with a c£50bn shortfall.
Starmer will be gone before next May’s local elections imho, and the overall UK financial pos gets periously close to a genuine crisis, which (despite their large maj) could see an early GE, late ’26 or early ’27.