From the TUC

Cuts Watch 29#: Ongoing private sector concern over cuts

03 Jun 2010, by in Cuts Watch

There is ongoing private sector anxiety over the prospect of public sector jobs and spending cuts. The British Chamber of Commerce have warned that “significant additional fiscal tightening – beyond the £6 billion already announced – should only be implemented when the recovery is definitively more secure.”  And the existing cuts are also causing worries. Uncertainty over the Building Schools for the Future programme has caused the Construction Products Association to argue that “if these cuts in spending are made on capital expenditure, this would exacerbate problems for the construction industry, delaying any potential recovery for a sector that is still in recession and accounts for almost 10% of GDP.”  The CEO of Northern Foods is also concerned about the impact of cutting now: The Times report that the company is planning for a double-dip recession as “severe cost savings in the public sector [will] inevitably lead to job cuts, in turn putting pressure on the economy.” In addition, the Chartered Institute of Purchasing and Supply has warned that “we’re starting to see a two speed recovery, where business-facing service providers are faring much better than consumer-facing firms…the impending public sector spending cuts and likely tax rises will no doubt hit both of these areas hard.”

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