OBR report reignites public sector pension battle

The OBR's Fiscal Sustainability Report said public sector pension liabilities were £1.13trn in March 2010, or 78.7% of GDP. However, the OBR added the future cash value of pension payouts will fall from 2% of GDP in 2015-16 to 1.4% in 2060-61. The government is expected to use the public pension liability figures to justify further public sector cuts, but unions have questioned the necessity of proposed reforms as liabilities are already falling. Brendan Barber, pictured, general secretary of the Trades Union Congress (TUC): "Projecting the government's future liabilities on any ar...