The UK public sector has swelled to its largest size in over a decade, even as the wider economy struggles with a hiring slowdown. Figures from the Office for National Statistics (ONS) show almost 6.2 million people now work in the public sector – the highest since 2011 and up 75,000 in the past year.
The total includes a record two million NHS staff and the biggest civil service headcount since 2006. By contrast, private employers have pulled back on recruitment following increases in employment taxes and the National Living Wage earlier this year.
The expansion in the state workforce comes at a difficult moment for Chancellor Rachel Reeves, who is preparing her autumn Budget on 26 November. She is expected to raise as much as £30bn in new taxes to close fiscal gaps created by weaker growth forecasts and pressure from the Office for Budget Responsibility (OBR).
Economists warn that the combination of a growing public payroll and persistently low productivity leaves Reeves with little choice but to tighten the tax burden, already heading towards a post-war high.
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