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Spending cuts could damage the recovery in cities where the public sector is the biggest employer, a think-tank and Whitehall officials have warned. A critical report by the Centre for Cities revealed major urban areas, including Barnsley, Swansea, Newcastle and Ipswich were too dependent on the public sector for jobs to withstand serious cuts. The think-tank also warned cities must plan now for reduced public spending from 2011. Since 1998, around 69% of the 1.2m jobs added to city economies were public sector positions, and one in four jobs in urban areas were now in public service. Public sector cities: Trouble ahead estimated that up to 290,000 public sector positions across the UK could be lost by 2014, and that the private sector was not strong enough yet to replace them. Ministers were urged to phase any public sector job cuts carefully while the economy recovered and to consider alternatives, such as pay freezes and flexible working, to reduce the Government's wage bill in the short term. Dermot Finch, director of the Centre for Cities said: ‘UK cities rely heavily on public sector jobs. But the current size of their public sector workforce is untenable. ‘Private sector jobs will need to grasp a bigger share of future employment growth.' Concern was echoed by Whitehall officials, who fear spending cuts could hit the UK's fragile recovery. A briefing, obtained by LocalGov.co.uk's sister title, The MJ, revealed a senior official's warning: ‘It's not our job to get into the politics but as part of the planning the Government has set out to reduce debt. ‘With slower growth the question to be asked is whether we adjust slower or quicker. If we pull a lot of money out of the economy, it could cause problems.'

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WHITEHALL

Cuts threat to recovery

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