Cost cutting measures go too far, says REC

Date: 27th January 2011

Small business owners operating in the UK could be among those interested in recent comments lamenting the extent of the government cost cutting.

According to the Recruitment and Employment Confederation (REC), the coalition's steps are starting to "cross the line" and make it difficult for enterprises to operate.

The comments follow the publication of official figures which showed that GDP contracted in the UK by 0.5 per cent in the final quarter of last year.

Rod Harris, chair of REC drivers, said: "We all realise the need for a programme of cuts to help the UK economy stand on its feet again. Today's figures, however, show that there is only so much shock that the economy can absorb.

"With an increase in VAT, fuel prices and taxation, the government's measures seem to have crossed the line. A reduction in the fuel duty would have no implication for the money the government earns, but would provide a helping hand to UK businesses by easing their tax burden."

Posted by Emily Smith