Branson backs Tory public spending plans

Thu 18 Feb 2010

Sir Richard Branson has said he agrees with the Conservative Party on the need to reduce public spending sooner rather than later.

According to the Virgin head, the winner of the next general election needs to set out a plan to reduce the bulk of the UK's budget deficit during the next parliament.

Sir Richard said these "tough decisions" cannot be put off until next year, as the next government needs to demonstrate it has the issues in hand.

He warned that the current budget deficit could pose a serious risk to the UK's economic recovery and could lead to the markets suffering a "damaging" loss of confidence.

Sir Richard added that the status quo also threatens to undermine the confidence of British and international businesses, as well as consumers.

This, he stated, could lead to jobs being lost and a drop in the amount of investment in the UK.

Conservative Party leader David Cameron has already stressed the need to take early action on reducing the deficit, arguing that measures such as reduced public spending would show "you are serious in your intent".

Richard Tinham, a partner at Winckworth Sherwood Solicitors, commented: "With public sector spending cuts looming on the horizon, I expect there will be renewed impetus for contracting authorities to investigate the delivery of functions through the procurement of shared service arrangements."