The Chancellor and Chief Secretary to the Treasury have today announced around £6.2 billion of spending cuts this year. Commenting, David Frost, Director General of the British Chambers of Commerce (BCC), said:

“We applaud the coalition’s early and specific action to reduce the deficit. While significant additional cuts will be required at the emergency budget, businesses will see this announcement as an important first step to restoring confidence in the public finances.

“BCC is particularly pleased to see a freeze on new civil service recruitment – and would urge the government to go further with a freeze in the total public sector wage bill and a clear plan to reform public sector pensions.

“We will, however, scrutinise cuts carefully to ensure that investment that supports business growth is not a casualty of the spending squeeze. We will analyse new cuts to business, transport, and local government spending to ensure that these do not undermine investment and job creation. While action to eliminate lower value spending is necessary, we must not axe investment in productive infrastructure.”