the business ladder

The Comprehensive Spending Review has revealed government plans to enforce £81 billion worth of spending cuts. Publicised today, it has received support from small businesses from across the UK.

George Osborne, the chancellor, disclosed plans to reduce public sector jobs by half a million, by 2014-2015, as well as increasing the pension age to 66 by 2020, and bringing in a new levy. The spending cuts are set to be the biggest since World War II.

In his address to the House of Commons, Osborne told MPs that “Today is the day when Britain steps back from the brink, when we confront the bills from a decade of debt.”

Quangos are also to face cutbacks, with 24 to go from the Department of Business, Innovation and Skills. Furthermore, the Train to Gain programmes, that try to improve the skills of businesses’ employees to help improve their performance, are to be removed. These plans have been set in place in an attempt to shrink the deficit.

Reactions to the cuts have been received positively on the whole by the small business community, despite the severity of the plans announced. 

The founder of Pimlico Plumbers, Charlie Mullins, expressed that the spending cuts were essential to urging private businesses to help salvage the economy. He was quoted saying that: “The private sector is now the UK’s fourth emergency service. Today’s government spending review announcement is a 999 call to private businesses.

“CEOs of major corporations, one or two man bands, and the MDs of medium-sized corporations like mine have the challenge to work even harder to create new business and expand the economy.”

The Federation of Small Businesses (FSB) welcomed measures to increase the number of adult apprenticeships by 50%, however it urged the government to put into place a Small Business Programme for Growth.

National chairman of the FSB, John Walker, said: “Our members understand that to reduce the public sector deficit, these cuts had to be made.

“The small business community continues to have a vital part to play in driving a credible recovery and taking on new members of staff to help tackle unemployment, so it is vital the government puts a Small Business Programme for Growth into action immediately.”

 

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