Marks Sattin responds to Hutton report
Dave Way, managing director of financial services recruiter Marks Sattin said: Todays Hutton report is an exercise in restoring a balance between public and private sector remuneration. Thats no bad thing. There will no doubt be an outcry from public sector workers who were hoping for early retirement on a cushy pension. But those working in the private sector who were paying for that privilege should be delighted UK plc has been bankrolling the bloated public sector and its unsustainable pension perks. That has to stop.
Although the financial services industry has seen much of the responsibility for the downturn foisted on its shoulders, the main reason the country is in trouble is the failure of successive governments to curb excessive public sector spending during the boom years. There is no better example of this than the continued abuse of defined contribution pensions. This was borne out of an antiquated attitude that those on government salaries could expect a market-beating pension and retirement at 60. This is clearly unsustainable as the financial services sector recognised over a decade ago. The current government must acknowledge that there simply isnt the money for this. They need to bite the bullet. Public sector workers need to join the rest of us and start living in the real world.