Business News

Small Business Growth Program called for

Filed under: Uncategorized — Alan @ 5:43 am

The new Comprehensive Spending Review has announced the largest government spending cuts since World War II.  Chancellor George Osborne explained that the cuts were to help Britain step from the brink and heal itself from the damage imposed by nearly ten years of unchecked government spending.  The total amount of cuts reach somewhere slightly above £80 billion.

In a further effort to cut expenses, the Chancellor announced the dismantling of publicly funded non-government agencies or quangos.  Many of them will be cut at the Department of Business, Innovation, and Industry.  Along with abolishing the quangos, the Train to Gain Programme, whose mission was to aid employers in getting training designed to uplift the skills of workers, will be cancelled.

He also broadcast plans to make 66 the new pension age and to cut half a million jobs in the public sector by the year 2015.

Despite the cuts, the private sector has responded with positive input.  Representatives have described the chancellor’s moves as a call to action for small business and hope that such obvious reliance on the private sector to bail out the economy will make banks more cooperative with private sector lending.

To this end, they are still calling on the government to produce a Small Business Growth Program that would insist on help from banks and lenders for small business operators.  While the private sector has been calling upon the government repeatedly for such a programme, the government, as of late, has made no mention of it.

Government cuts in spending will cost million jobs

Filed under: Employees — Alan @ 5:26 am

Government cuts in spending are going to lead to nearly a million job losses, reports are claiming.  About half of the job losses would come from the private sector because of jobs supported by government contracts.  The rest would come from within the government itself.

The hardest hit are predicted to be business services and construction sector jobs.  The report placed the total job loss, including those jobs cut from the private sector because of public sector cuts, at just a shade over 940,000 jobs.

The same report stated that this outcome would create a drag on economic recovery but not destroy it altogether.  The report, compiled by the accounting firm of PwC said that increases in labour flexibility; people working for fewer hours and less wages, would help reduce the job losses.  That, however, would affect the economic recovery.

The areas expected to be hardest hit would be the Southeast of England, Scotland, and the Northwest.  PwC stated that percentage speaking; Ireland would be hardest hit with five per cent of all jobs lost.

Treasury replied to the report by saying that a decisive plan needs to be found in order to lessen the UK deficit and return faith in the economy.  Although there was no speculation on what that plan might be or who was working on it, if anyone at all.

The Treasury further stated that not working on such a plan would jeopardize the economic recovery.  Experts from the Bank of England, International Monetary Fund, and The World Bank agree.