Budget to cost 1.3m jobs

George Osborne's austerity budget will cause 1.3m job losses over the next five years according to Treasury figures.

The official assessment, leaked to the Guardian, predicts Government spending cuts will trigger the loss of between 500,000 and 600,000 jobs in the public sector, and 600,000 to 700,000 in the private sector. A proposed 25% inflation-adjusted cut in Whitehall spending will account for the drop in public sector roles, while the private sector will suffer the knock-on effects of lost government contracts and reduced public spending. Job losses are expected to be balanced by the creation of 2.5m private sector jobs over the same period, according to the figures, though these numbers wer...