The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.

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The Chancellor’s job cuts don’t show
By Dr Madsen Pirie

It was last year that UK Chancellor Gordon Brown repented for his public jobs spree and pledged to cut 84,150 Whitehall posts by 2008. Now Brendan Carlin, Telegraph political correspondent, points to news that civil service jobs are up by 44,000 while the public sector as a whole has 650,000 extra staff. Obtained under the Freedom of Information Act, the figures show that

Despite Mr Brown's claims in this year's Budget that 12,500 posts were being cut by the end of 2004/5, not one arm of government had yet sacked anyone, with thousands of staff being reallocated to other areas, the paper claimed.

The Treasury's case it that the increases are from 1997 figures, and that it has reduced numbers since 2004 levels. However, given Mr Brown's known preference for redefinition, analysts allege that the 'jobs' which disappeared have been replaced by new 'posts.' I personally know one official whose job was indeed 'saved,' and who was instantly re-engaged in another 'post.'

The one maxim which guides is that it is easier to create public sector jobs than to remove them. Even Lady Thatcher, the toughest of the tough, was only able to reduce public sector numbers by transferring whole functions to the private sector. Gordon Brown, less creditably, has found the only way to lower public costs is to transfer whole liabilities off-budget.

We will not get the real figures until Mr Brown has long left the Treasury, given the skill at obfuscation and redefinition which has developed. But it begins to look as though those skeptical that the cuts would be delivered might have the best of it.



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Adam Smith (1723-1790)
Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.

A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations.