Why cutting public sector jobs will not save money

Economist Richard Murphy has shown that that the cost to the government of cutting a public sector job for a person earning £25,000 is £23,000 a year. In other words 92% of the cost of any redundancy right now will be borne by the state. Check out Richard’s blog at the link below – it makes very interesting reading.
http://www.taxresearch.org.uk/Blog/2009/07/08/govspend/

Let's hope that Alistair Darling has read Richard's blog entry.