It is not just the public sector that worries about the spending squeeze that seems inevitable after next spring’s election. The knock-on effect on procurement and infrastructure projects will affect private sector companies from defence to retail, construction and transport.

The Trades Union Congress points out that, while the public sector wage bill in 2007-08 was £151bn, £167bn was spent on goods and services from the private sector. A 10 per cent cut in spending would take 1 per cent of gross domestic product out of the private sector, it argues.