THE PUBLIC sector has been attacked for failing to raise productivity in line with rising investment.

Nigel Bourne, Sevenoaks-based regional director of the CBI, the employers' organisation, claimed public services had enjoyed a seven per cent increase in funding but only a two per cent rise in productivity.

"Business couldn't do that," he said. "UK Plc can't do that, it would go bust in no time at all. Anyone who embarked on an investment plan like that would be out on their ear. Where's it going? It's not coming out in better services."

Mr Bourne said he was concerned about management capability and structure in the public sector.

The cost of Whitehall had gone up by 50 per cent since 1997, costing the British taxpayer £7 billion a year, Mr Bourne added.

"We've got to get away from that kind of top-down, centralised Whitehall culture and we've got to give real initiative and opportunity to local people who are responsible for delivering services."

Meanwhile, Mr Bourne called on the Government to help hard-pressed Kent and Medway manufacturers.

Manufacturing problems were not just in the North East or the North West but in the South East as well. The downward trend was worrying.

"Jobs are going at a rate and these jobs will never be replaced," he said.