Research and Intelligence

Public Sector in the North West

Publisher :
Date Published :
11 March 2011
Subject Keywords :
Public & Private sector jobs, Employment forecasts
Area :
Cheshire,Cumbria,Greater Manchester,Lancashire,Merseyside,Northwest
Format :


The financial crisis and subsequent recession have led to a increase in government borrowing over the last two years and a lasting structural deficit in the UK accounts. The result being lasting changes to fiscal policy are necessary; the public sector in terms of employees and spending is expected to contract.

The public sector is a large employer in many areas, moreover through different funding steams, programmes and projects it provides critical support to the economy and society. Therefore it is fundamental to gauge the size and the contribution of the public sector to the North West to understand the potential impact that inevitable fiscal tightening will have on the region.

The recession has left a lasting structural deficit in the UK's accounts. This structural deficit is the result of a large and permanent reduction in the level of UK output caused by the recession and means that substantial long lasting changes to fiscal policy are necessary. The Public Sector in the North West - Phase One Working Paper aims to provide a snapshot of the size, scale, make-up of the public sector in the region. Also available are five sub-regional briefings from the RIU providing headline findings as well as potential implications for public and private sector jobs over the next five to six years based on Office for Budget Responsibility employment forecasts for the UK. 

Stage 2 of the work examines the impact of the Comprehensive Spending Review (CSR) on the North West economy. The paper looks at the effects the spending cuts may have directly on employment and the impacts on the private sector, including a sector analysis of effects of public sector cuts. The paper also examines the effects on local communities from the cuts. 

The RIU have also done a significant amount of work examining the impact of the Comprehensive Spending Review (CSR) on the North West economy. A short briefing is available below which summarises some of the research from the RIU as well as outlining findings from Experian who have modelled the impact of the CSR on the local economy and its effect on businesses.

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