I have heard that
"Record levels of government investment in the public sector has shown that such a strategy does not always lead to improvements. In fact, public sector productivity has fallen by 3.4% in the past 10 years while private sector productivity has grown by 27.9% in the same period. "
http://www.statistics.gov.uk/articles/nojournal/TotalPublicServiceFinalv5.pdf
http://www.cebr.com/Resources/CEBR/Public%20sector%20costs.pdf
i'm wary of anything coming from the CBI, but that is still an interesting stat if true
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