If lots of public sector workers lose their jobs, they will go on benefits and the welfare bill will go up. They will also have reduced spending power and so the private companies that directly or indirectly depend on their custom will fold. As more and more people are put out of work, the welfare bill will mushroom and there will be a vast pool of people with reduced spending power not paying income tax. I suppose it’s comparable to climate cycles – you interfere with them at your peril.
I hope I’m wrong.