Upcoming Events :
Seminar: Outsourcing and Contract Procurement
Tue 28 Feb 2012
Minerva House, 5 Montague Close, London, SE1 9BB
CBI: Public spending cuts painful but necessary
Tue 25 May 2010
The CBI has said the recently announced cuts in public spending will be painful, but insisted they are absolutely necessary.
Earlier this week, chancellor of the exchequer George Osborne outlined plans to cut government spending by £6.2 billion over the next year.
Richard Lambert, director general of the CBI, said the extent of the cuts shows that the country is serious about tackling the deficit.
He stated that private sector firms had to take strong action to reduce expenditure throughout the recession, which means the public sector must do the same.
Mr Lambert added that the Treasury has managed to find slightly bigger savings than had been expected, which he said was encouraging.
The cuts in public spending include a civil service recruitment freeze and a reduction in department spending.
Government departments will also be expected to cut out wasteful spending, such as the £1.15 billion spent on "discretionary areas" such as advertising, consultancy and travel expenses.
James Oxley, a solicitor at Winckworth Sherwood, commented: "These cuts represent the expected approach of the new government and reflect what has been occurring in the private sector." 
