7:00pm Saturday 4th September 2010
COLCHESTER could suffer major job losses because almost a third of people are employed in the public sector.
The Government’s comprehensive spending review is due to be published in October and cuts of up to 40 per cent may be implemented.
While the borough has coped particularly well during the recession, according to Colchester Council, the situation could get worse.
The issue was highlighted at a meeting of the policy review and development panel on Wednesday, as the committee considered the council’s economic development strategy for the next five years.
Nigel Myers, enterprise and tourism manager for the council, said: “Colchester as an economy has been very resilient.
“It is a very diverse economy, but it would be remiss of me not to point out there are significant challenges ahead.
“A third of jobs are in the public sector and if we are facing cuts in the public sector, it will have a knock-on impact.”
The economic development strategy states: “The borough faces some significant economic challenges in the period to 2015.
“These challenges include the effects of any reduction in public sector spending, given the relatively high level (31 per cent) of public sector jobs in the borough.”
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