Businesses concerned over lack of public sector progress

Business is dissatisfied with progress on public service reform and sceptical about cost-saving plans, according to a new CBI survey published today.

Most companies – 86% – believe the £21.5bn Gershon efficiency targets will be missed, while only 4% of the 400 firms surveyed believe they will be met.

The survey found that:

  • 89% of firms are unhappy with the reform of public transport

  • 73% are unhappy with the education system.

  • 72% are unhappy with the NHS

  • 69% are unhappy the criminal justice system

CBI director general Sir Digby Jones said recruitment was being hampered by skills shortages. And he added that employees still have to wait too long for hospital treatment.

“Businesses have to be efficient to survive,” he said. “We look to the public sector to drive through productivity gains that justify the ‘once-in-a-generation’ pay increases.”

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