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East Midlands Chamber News

£6.2bn Cuts – The Devil Will Be In The Detail

The coalition government's commitment to deliver long-term stability to the UK economy has today been welcomed with caution by the Derbyshire and Nottinghamshire Chamber of Commerce.

Some £836m will be cut from the 2010/11 budget of the Department of Business, Innovation and Skills, including £270m from lower-value spending of the regional development agencies.

Around £150m will be made available to fund 50,000 new apprenticeship places, focussed primarily on small and medium-sized firms, whilst £50m has also been set aside to tackle backdated business rates bills.

Commenting on today's announcement, Richard Wilkins, President of the Derbyshire and Nottinghamshire Chamber of Commerce, said: "Reducing the UK's unsustainable deficit will be key to securing the recovery. With the economy still extremely fragile, it is crucial that these proposed cuts do not damage confidence.

"Like any announcement of this kind, the devil will be in the detail and we await with particular interest to see how the proposed spending cuts will be implemented and the impact they will have on local businesses.

"The Chamber is particularly interested in proposals regarding the future funding of business support and is seeking the views of members about their priorities, in order to influence the decision-making to keep the most beneficial services. We'll see how closely this mirrors the government's plans when we present the findings of this research in July."