Why Britain is stuck in a rut

With another 95,000 workers added to the public payroll last year, one in five British employees - a total of more than 5.8 million - now works for Whitehall.

"Remorselessly, unstoppably, Britain's bloated public sector just keeps on growing," said the Daily Mail. With another 95,000 workers added to the public payroll last year, one in five British employees - a total of more than 5.8 million - now works for Whitehall, the town hall, or the "myriad quangos spawned by New Labour".

Yet in the summer of 2004, Gordon Brown promised to cut spending on public-sector jobs. He pledged that 84,000 central Government posts would go, plus 20,000 in Scotland, Wales and Northern Ireland. Instead, 17,000 new administrators have joined the payroll in the year to July. Overall, growth in public sector employment is expanding at 1.7% a year - that's comfortably more than the private sector rate of 1%, and public sector wages are rising faster too. It means that some parts of the country - Scotland, northeast England, Wales and Northern Ireland - now get "more of their income from the taxpayer than from business or enterprise".

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