The British chancellor of the Exchequer (the finance minister) in his autumn statement to the House of Commons on Nov. 29 admitted that the British budget deficit will last beyond 2015 — when a general election has to take place. That means continuing cuts in government expenditures and in public sector jobs.
Salaries in the public sector currently frozen will be allowed to increase by 1 percent in 2013 and 2014. As inflation has been running at 5 percent — although it is expected to fall to 2 percent from next year — the freeze and the cap on salaries means a real cut in earnings for workers in the public sector. They will also have to contribute more toward their pensions and have to work longer before they can retire.
Proposed changes in pensions resulted in a one-day protest strike Nov. 30. Discontent among teachers and other government employees is widespread and could lead to further disruption.