The Government Spending Review has finally been delivered. We review the debris to gauge reaction to the changes.
The public sector knew they were in the firing line for government cuts; budgets have been slashed and job losses are on the way. But many argue that the review signals a fundamental change in British society as we are ‘weaned-off' our reliance on the British Welfare State.
But with the economic recovery patchy at best, the situation could get tough for many who are already struggling to make ends meet.
The Housing Market
Mark Goodwin, Royal Institute of Chartered Surveyors (RICS) Director of External Affairs believes that the property and construction sector will share the pain in an economic downturn.
"The Government is gambling with the economy by reducing Communities and Local Government capital spending by 74% over the next four years. This will have a significant effect on housing supply, especially social housing, which is already at historically low levels.
As well as reducing the number of affordable homes this could have a wider impact on the housing market where continued low supply will create affordability issues, particularly for first time buyers.
"This comes on top of a 6% reduction in spending on the construction and refurbishment of schools. Cuts like this risk endangering the hugely important construction sector - every £1 spent by the Government on building projects generates around £3 for the wider economy.
"Cutting construction spending will have serious negative impacts including long term unemployment, loss of skills and outdated infrastructure preventing economic growth."Retirement Age to Rise to 66
The retirement age will rise from 65 to 66 by 22.
Standard Life responded to the increased retirement age to 66 saying due to life expectancy increases the rise to the state pension age is not unexpected though likely to result in an increase in private pension schemes.
"Raising the bar to age 66 will make the state pension more affordable for our children, but delaying retirement by a year is also sensible for private pension savers," said Andrew Tully, Standard Life's senior pensions' policy manager.
49, Public Sector Jobs to Face the Axe
Cuts in public sector jobs are likely as the spending review looks to accommodate a 19 percent four-year cut in departmental budgets.
Consumer Credit Counselling Service (CCCS) is warning personal debt problems among public sector employees are likely to rise following these cuts.
They expect many public sector workers who are managing their debts to face problems when redundancy and overtime bans will mean they are unable to do so.
"The private sector can expect a knock-on effect," said Delroy Corinaldi, CCC external affairs director.