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14th January 2022, 17:21

Sir Joe Bossano expects public service to spend £40 million more than budgeted this financial year - public sector pay rise 'will not be possible for some time'

Sir Joe Bossano says many public service departments have not been able to stick to the savings the Government asked them to make this year. The Minister with responsibility for financial stability told GBC’s Viewpoint that he expects, by the time this financial year is up, approximately £40 million extra will have been spent by the public service. 

This money is beyond their allocated budgets and will require supplementary funding.

Sir Joe said it underlines the difficulty facing the Government in restoring financial stability at a time when the cost of running the public sector was already running at a deficit of £1 million a week. He said discipline is required as the money is not there. The veteran politician stressed he wants people to understand the seriousness of the situation, saying government finances are worse than at any other point in his 50 years in Parliament.

Sir Joe gave assurances that nobody in the public sector would be made redundant but said it would not be possible for some time to give a pay increase. The only way to do so would be to borrow more money, which he said would be unacceptable given that, on average, public sector workers already earn much more than private sector workers.