Budget job losses ‘could result in elevated debt woe’

A number of Britons could soon be facing debt troubles as the nation may experience severe job losses due to the recent emergency Budget, it has been suggested.

According to the Guardian, the Treasury assessment of the planned spending cuts could result in 1.3 million individuals being forced out of work over the next five years.

The figures revealed the government is expecting between 500,000 and 600,000 jobs to be dispersed in the public sector and between 600,000 and 700,000 more in the private sector by 2015.

Public sector employees will feel the brunt of the 25 per cent inflation-adjusted reduction in Whitehall spending over the next five years, while employment in the private sector will be especially affected by government contract losses and lower public spending, the report added.

The Consumer Credit Counselling Service recently warned the VAT hikes announced in the Budget could be the final straw for those struggling with debt problems.

By Joe Shervin