Lord Hutton: Public sector pension reform is in urgent need
Lord Hutton has urged for public sector pension reform
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Sunday, 04, Dec 2011 08:37
Posted by Rob Stanworth
The coalition government needs to oversee a reform of public sector pensions following the downgrading of Britain's growth forecast, according to Lord Hutton.
He told the BBC that change is now the "order of the day" and that the offer on the table from the government is "perfectly credible".
Lord Hutton's comments come at the end of a week in which the Office for Budget Responsibility revealed that Britain's growth this year will be around 0.9 per cent, down from the previously predicted 1.7 per cent.
Furthermore, next year a growth of 0.7 per cent is now expected, a reduction from 2.5 per cent which was hoped for back in March.
"Growth is slower. We know that by 2016 on the latest projections the economy is going to be about 3.5 per cent smaller than we thought it would be. That is going to affect the sustainability of public sector pensions in a negative way," he added.
Lord Hutton went on to say that change needs to happen if Britain is going to remain competitive and successful as an economy.
"We could be heading for the rocks unless we make adjustments now," he urged.
Last week, the Organisation for Economic Co-operation and Development warned that Britain is already on a slippery slope back into recession.