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A good start on savings

Jeegar Kakkad May 24, 2010 12:00

So the long slog of fiscal consolidation begins today.

And the new government has got off to a good start by delivering the £6.24bn in savings through cuts in the cost of government itself.

Because it's a big spending the deparment, the Department for Business was never going to be immune from the tough decisions.

Where EEF have concerns, however, is the uncertainty around investments in energy security: where commercial contracts are involved, the government need to fairly quickly provide some certainty for the companies concerned.

As our Chief Executive, Terry Scouler, said today,

“The task of repairing the public finances is a significant one and we don't have to look too far to see what happens when governments don't act quickly to address deficits.

“Given the tough decisions it faces the government is right to make an early start and proceed with a focus on reducing the cost of government and ensuring value for money.  The Efficiency and Reform Group should formalise the process of bringing transparency to what should be an ongoing process of improving public sector productivity.

“However, the decision to freeze funding for frontline investments from the previous government’s Strategic Investment Fund could have significant consequences on investments already underway. Where commercial interests are involved these must be resolved as quickly as possible.”

 

Disclaimer
This is an informal blog about manufacturing and the economy written by EEF's policy and representation staff. While it is written from an EEF perspective, contributions should not be taken as formal statements of EEF policy, unless stated otherwise. Nor does it cover all the issues on which we campaign - you can check these out in more detail at our main site.

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About EEF

EEF helps manufacturing businesses evolve and compete.  We provide business services that make them more efficient and management intelligence that helps them plan.  Our work with government encourages policies that make it easy for them to operate, innovate and grow.

Find out more at www.eef.org.uk