Stand back, it's an emergency... budget!

Stand back, it's an emergency... budget!

The emergency budget has met with a mixed response. The Chancellor George Osborne called it the "unavoidable budget" and pointed out that it was "tough but fair". Business groups have given a largely positive reaction. Predictably, the unions were somewhat less positive.

Dave Prentis, general secretary of Unison said, "This budget signals that the battle for Britain's public services has begun with the Government declaring war. Public sector workers will be shocked and angry that they are the innocent victims of job cuts and pay freezes. Freezing public sector pay when inflation is running at 5.1% and VAT is going up, will mean a real cut in living standards for millions of ordinary workers and their families - already struggling to pay rising bills."

Experts suggest that the increase in VAT from 17.5% to 20%, may cost around 200,000 to 235,000 UK jobs over the next eight to 10 years. One of these is David Smith, Chairman of the Shadow Monetary Policy Committee, part of the Institute of Economic Affairs, who has said the VAT rise would increase unemployment by 235,000 over the next decade. The calculations are based partly on the assumption that a rise in the cost of VAT-related goods and services will lead to higher pay claims by workers, raising costs for employers and depressing demand for labour.

The Government has wasted no time. Immediately following the budget it announced it is considering closing 103 magistrates courts and 54 county courts to cut costs. Closing the courts would save around 15.3m a year in running costs, with a further 21.5m in maintenance. A consultation will be launched on whether to keep the courts running.

The Police are also facing cuts. Nick Herbert, the Policing Minister, said some police should be based in community centres or even high-street shops rather than "under-visited" police stations.

Professor of Public Policy at Manchester Business School, Colin Talbot, said a 25% cut in the 5bn police budget would be the equivalent of losing 35,000 police officers, 20,000 civilian staff and 4,000 community support officers.

Figures provided by 12 of the 43 forces in England and Wales have shown that 35 stations closed between 2006-07 and 2008-09 the equivalent of one a month while just 12 new ones opened.

The wrangling has already begun. The Royal College of Nursing (RCN) has asked to meet with the Government for urgent talks about the two-year pay freeze for public sector workers.

The RCN's Head of Employment Relations, Josie Irwin, said substantial savings can be made by spending less on management consultants and by avoiding initiatives, such as re-branding hospitals. She also said that nurses can advise managers on improvements in working practices, citing the example of Blackpool, Fylde and Wyre Hospitals NHS Foundation Trust, which saved about 20m in 2007 without any job cuts, thanks to an efficiency programme agreed between HR managers and unions and staff.

It is clear that all employers, whether large or small, will have to ensure that they are managing their staff to achieve optimum productivity, and tackling problems of poor work performance in a timely and effective way.

If you find yourself in such a situation, Russell HR Consulting provides expert knowledge in the practical application of employment law as well as providing employment law training and HR support services. For more information, visit our website at http://www.russellhrconsulting.co.uk/.

Russell HR Consulting offers HR services to businesses nationwide, including Buckinghamshire (covering Aylesbury, High Wycombe, Milton Keynes, Bedford, Banbury, Northampton, Towcester and surrounding areas), Nottinghamshire (covering Chesterfield, Mansfield, Nottingham, Sheffield, Worksop and surrounding areas) and Hampshire (covering Aldershot, Basingstoke, Reading, Farnborough, Fareham, Portsmouth, Southampton and surrounding areas).

POST COMMENT

PS3 Lights Fix Review Fresh One of the Best FAP Turbo Review The Review of Cleveland HiBore XLS Draw A Comprehensive Review Of Various Types Of Razor Scooters The Review of Cleveland HiBore XL Review Of Tangled Movie 2010 Magniwork Review Order Custom Essay for Money Standard Ps-p61 Corner Side Stapler For Qc Collators Review Financial Help How to Save Money The Marvel of Detox Foot Pads Three Ways To Get More For Your Money In Medicare Supplement Plans Joliese- Review and get it FREE