Business chiefs who backed cuts now worried


10:14 am - April 9th 2011

by Sunny Hundal    


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Some of the UK’s most prominent business leaders, including individuals who gave their personal stamp of approval to the chancellor’s aggressive spending cuts, have said they have growing concerns about the state of the economy, warning of weak growth and rising inflation ahead.

Archie Norman, the former Tory MP who now chairs ITV, said the government’s growth targets were too optimistic. The former Asda boss Andy Bond, Carphone Warehouse founder Charles Dunstone, Tory peer Lord Wolfson, who runs Next, and Yell chairman Bob Wigley predicted tough times ahead as soaring inflation dents consumer spending power, although they continue to support George Osborne’s austerity strategy.

Bond expressed doubt about the ability of the private sector to create as many jobs as hoped. “I don’t think the private sector is going to be able to pick up the slack in this climate,” he said. Bond, who ran the UK’s second largest supermarket chain for five years, forecast a two-year “retail recession” earlier this week.

He was one of 35 bosses who signed a letter to the Daily Telegraph six months ago supporting George Osborne’s plan to slash the deficit and arguing that businesses “should be more than capable of generating additional jobs to replace those lost in the public sector”.

…more at The Guardian

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About the author
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
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Reader comments


1. Charlieman

It’s time to dig out that quote of Keynes:
When the facts change, I change my mind. What do you do, sir?

2. @UKcuts

A question I’ve been wondering over for a while now finally answered.

So the question has to be, when they all co-signed that letter, what did they think savage cuts and a vat hike would achieve? Ringing tills?

3. Chaise Guevara

@ 1

Well said.


Reactions: Twitter, blogs
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  3. Andy Bean

    Business chiefs who backed cuts now worried | Liberal Conspiracy http://t.co/zFxO0dQ via @libcon

  4. Double.Karma

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  6. John Edginton

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