Public sector must lose 750,000

ON UK INCOME

George Osborne's emergency budget was broadly welcomed by the market, with gilts and sterling moving slightly higher on the news.

Much of the important detail will, however, be in the October spending review. Neptune’s chief economist has forecast 750,000 jobs need to be cut from the public sector. When more details about job cuts are announced in October it is likely there will be more public unrest and, with the public sector representing 20% of jobs in the UK but 60% of union membership, we can expect many more protests. When combined with the upcoming increase in VAT, the outlook for UK consumer sentiment is challenging. In the Neptune Income fund and Neptune Quarterly Income fund we have therefore sought...