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East Midlands Chamber News

Chamber Highlights Emergency Budget Concerns

New Chancellor George Osborne announced this morning that the emergency Budget will take place on 22 June - exactly six weeks after the new coalition Government took office. Prior to that, on 24 May, he will be setting out next week details of the £6bn of spending cuts to be made this year.

A review of pay and bonuses for senior civil servants, significant reductions to the costs of quangos and cuts to some Whitehall departments are all likely to be included. Spending on large scale projects is also expected to come under scrutiny

Reacting to the announcement, George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said: "Whilst it is clear that government needs to come up with a strong deficit reduction plan that sets out in detail the cuts in expenditure needed this year, the Chamber is extremely concerned about the effects that any cuts may have locally.

"The Chamber believes that future funding for important infrastructure projects such as the widening of the A453 should be protected. Likewise, any proposed cuts to local quangos such as the East Midlands Development Agency, which would lead to a reduction in beneficial business support services, should also be avoided.

"It is vital that the government ensures that the negative impacts of any cuts do not fall disproportionately on the business sector. Business will play a key role in driving the economic recovery forward and the new government has an opportunity to use its first Budget as a statement of intent by creating the right environment for growth."