Cuts have early impact on private sector

26 Jun 2010, by Adam Lent Guest in Society & Welfare

In an early indication of how the cuts announced in the Budget are going to cause trouble in the private as well as the public sector, a social housing maintenance company, Connaught, has issued a profits warning which led to a severe drop in its share price.  A similar company, Mears, also saw its share price hit. As the FT reports, the notion that such outsourcing companies might pick up extra business because they offer cost-savings to local authorities isn’t being bought by the markets.