THE Conservatives have announced plans for public sector cuts to help tackle the deficit.

Tory adviser Sir Peter Gershon said not filling vacant posts and reducing the use of agnecy staff could save taxpayers £2bn a year.

The plan would reduce the public sector workforce by between 20,000 and 40,000.

Conservative leader David Cameron also proposed today that no senior manager in the public sector should earn more than 20 times more than the lowest-paid person in their organisation.

The scheme could mean that up to 200 senior public sector executives would face pay cuts.