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Thursday, 21 October 2010

CSR 'will be welcomed by many markets'

The government's Comprehensive Spending Review will likely be welcomed in many markets after not being as harsh as expected, one economic forecasting group has claimed.

Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, said that the effect on UK sectors, such as sales recruitment, will not be as severe because chancellor George Osborne delivered a plan which kept spending within the parameters that he set out in June's emergency budget.

The CSR revealed that £81 billion will be cut from public spending over four years, with departmental cuts standing at an average of 19 per cent - much less than the 25 per cent that was expected.

Mr Goodwin explained: "The fiscal package does represent a challenge for the economy, but after a soft patch over the next few quarters, we are confident that momentum will build and that the recovery will withstand the spending cuts."

He added that companies will be "key" to this recovery and said the publication of the CSR should help to remove a lot of the uncertainty that was previously holding them back from investing in jobs and equipment.

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Posted by John Oak and Wayne BlyADNFCR-1617-ID-800134425-ADNFCR

Source: The Sales Director News

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