Proposed cuts in public sector to help or hinder freelancers?

That is the amount that Sir Peter Gershon, who provided the blueprint for the party's efficiency plans, says needs to be cut within their first year in office. Such a large cut is bound to affect freelancers who regularly accept public sector contracts.

In an interview with the Financial Times, Sir Peter said that measures such as cutting back on agency and contract workers could save the country up to £2 billion by 2011.

In total Sir Peter has proposed measures to make around £12 billion in savings. He also suggests cutting back on IT spending and reducing the amount spent on consultancy fees.

He has advised the Tories to outsource their back office functions and focus on better management. According to the latest government efficiency review, £18bn is spent on the back office, and if the party followed the example of some private sector firms they could save between 35% and 70% through outsourcing.

The REC however is not pleased with the possibility of a reduction in the number of contractors used in the public sector. They have consistently called for a 'deep rooted' reform for the sector as opposed to short-term cuts which they believe will reduce the efficiency of public services.

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