Commenting on the deal between the Government and the unions over the public sector retirement age, David Frost, Director General of the British Chambers of Commerce, said:

“This deal is unacceptable from the standpoint of British businesses. Public sector pension liabilities stand at almost £700 billion and are expected to rise by 40 per cent over the next 20 years. This places a tremendous strain on businesses and their employees at a time when many in the private sector are struggling to pay for their pensions and people are retiring later.”

“The Government needed to grasp the nettle and increase the public sector retirement age for existing employees on a sliding scale. They have failed to do this. We are now faced with a situation where public sector pension costs will continue to balloon and the private sector will pick up the tab.”

“British businesses are facing huge competitive pressures. In order to compete in the global economy, business needs public investment in our skills and transport infrastructure. This investment is threatened by today’s announcement as expenditure on public sector pensions is now likely to rise by over 1 per cent of GDP over the next twenty years.”