- Tuesday, 25 May 2010The spending cuts proposed by new chancellor of the exchequer George Osborne should not push Britain into another recession or cause immediate job cuts, an expert has claimed.
If Britain went into another recession it could mean that more consumers would have to turn to a
debt management plan if they lost their jobs and could no longer pay off their debts.
However David Kern, chief economic advisor at the British Chambers of Commerce, has an optimistic outlook on the cuts.
He said: "On the whole, my view is positive. I think the measures will improve confidence in the financial market and will help the credit rating of the UK. These cuts will not push the economy into another recession because they are fairly small."
George Osborne and chief secretary to the Treasury David Laws announced on May 24th that £6.2 billion of savings will be made in 2010-11.
They plan to achieve this partly through a recruitment freeze on the civil service (£120 million), cutting the cost of quasi non-governmental organisations (£600 million) and reductions in property costs (£170 million).
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