Chamber Calls for Clarity Over Fresh Cuts

Chamber Calls for Clarity Over Fresh Cuts

Chancellor George Osborne today announced an additional £3bn of Government spending cuts for this year, including £450m from the Department for Business, Innovation and Skills (BIS) and £545m from the Department for Transport (DfT).

He also announced plans to sell the Government’s remaining 30% stake in Royal Mail, expected to raise an extra £1.5bn to help decrease the nation’s debts.

George Cowcher, Chief Executive of East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire), said: “Many businesses were expecting a further round of cuts to public expenditure in the wake of an election which returned a Conservative majority. This will put even more pressure on the private sector to expand and create the jobs, wealth and, in turn, tax revenues required to fund the public services the UK wants and needs.

“Over the past five years, businesses, particularly here in the East Midlands, have done much of the heavy lifting to get the economy back on its feet. They stand ready to do so again and take on the challenge of helping to achieve the Chancellor’s vision of making the Midlands the UK’s ‘Engine for Growth’.

“With this in mind, the Government should, without delay, provide additional clarity on exactly where the axe will fall, particularly in relation to the planned cuts to the BIS and DfT budgets, in order to minimise uncertainty and create the stability businesses need to thrive.

“Business wants a plan for fiscal consolidation which is carefully balanced with the overriding need to nurture investment, job creation and growth. Investing in increasing productivity and business growth, coupled with preventative measures to control costs while interest rates are historically low, is likely to reduce the structural deficit faster than slashing spending too deeply.

“Although the deficit still needs to be eliminated, growth, not austerity, should now be the watchword.”