UK gov't needs to cut routine spending: association
ReutersLONDON--Britain's government needs to cut day-to-day spending more deeply in order to spur longer-term investment and get the economy growing more quickly, the head of a British employers' association said.
February 14, 2013, 12:36 am TWN
The British economy will probably grow by just 1 percent in 2013, underscoring the need for the government to work harder on boosting investment, John Cridland, director-general of the Confederation of British Industry, said.
“The government's efforts have not had the momentum or the urgency that I have been looking for,” he told reporters.
Cridland said he would make the case for more focus on capital spending, on areas such as road repairs and housing, when he meets finance minister George Osborne ahead of his announcement of the next budget in March.
“Public sector capital has borne the most significant part of the cuts so far. We would like to see that rebalanced. I think that should come out of current spending,” he said.
Osborne has staked his political reputation on largely eliminating a budget deficit that totaled more than 12 percent of GDP when he came to power, but a lack of economic growth has pushed his plans two years off track.