George Osborne leads by example

While in many ways George Osborne, the Chancellor of the Exchequer, was expected to lead by example, today's news of 350 job cuts at the Treasury is not exactly something the government is proud of. The workforce of the Treasury will be reduced to 1350 to 1000 over the next three years although it is hoped that the majority of job losses will be as a result of "wastage" with positions not refilled upon retirement, etc.

In many ways this reduction in Treasury employment numbers marks the end of a massive increase in the public sector workforce since the previous Labour government came to power. It is now common knowledge that over 50% of the UK workforce are directly associated with the public sector at a time when the private sector is under pressure and in need of financial assistance. It is unclear how much money will be saved by the reduced numbers at the Treasury but there's a feeling that George Osborne is looking to reduce overall Treasury costs by around 25%.

Over the next few weeks, ahead of the major budget review next year, we will begin to see a drip feed of potentially damning and damaging news regarding budget cuts in the UK. The reduction in the Treasury workforce is seen by many as a precursor to more bad news in the short to medium term.