In anticipation of Alistair Darling’s pre-Budget report on Wednesday, the British Chambers of Commerce (BCC), which represents 100,000 small companies, has said that every department of government should contribute towards massive cost cutting.
In its latest economic assessment, BCC said radical reform of the public sector, which, employs nearly six million people in the UK and 29% of the workforce in Brighton & Hove, must be the "cornerstone of a credible plan".
The chancellor will is widely expected to give a "clear direction of travel" for the UK economy including more details about how the government plans to halve the deficit over four years – a promise made in the Queen’s speech.
The pre-Budget report will be the last before a general election, which must take place by June 2010.
BCC Director general David Frost has made it clear that reforming the public sector, including pay and pensions, should be a crucial part of plans to reduce spending. He said: "Public sector spending needs to be brought under control. What we are saying is there cannot be any sector immune from those cuts.
"We have health and education, about a third of public expenditure, and if we ring-fence those and say they cannot be touched, what that means is other aspects of public expenditure will have to take a very significant cut and that could harm business."
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British Chamber of Commerce