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.