The Spending Review - spending and wage growth

26 June 2013

By Paul Cleal, Partner and PwC Government and Public Sector Leader

We’re seeing money moving around within the overall envelope rather than new cash. In some cases, as in infrastructure, despite positive announcements of new plans, the overall numbers are still decreasing.

Overall more than 50% of public spending is ring-fenced or protected from cuts, which concentrates the pain in the unprotected departments.  Across those unprotected departments the pain has been shared relatively evenly, with those focused on defence, security and growth fairing better than the others.

NHS funding remains protected but demand is rising for services, and costs are going up. Further blending of social care and health budgets has to be coming.

PwC analysis shows real wage growth will be more subdued than in past recoveries. The further public sector pay restraint announced today will contribute to the slow pace of recovery.

Lots of new private sector jobs have been and will continue to be created, but are they 'good' jobs? In work, poverty is on the increase as many people are in part-time, temporary and low paid employment.

For more analysis on the Spending Review 2013 visit

Paul Cleal
Read Profile  |  Contact via email  |  Tel: +44 (0)20 780 45603



Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated and will not appear until the author has approved them.