Sep
03
2010
Cutting public spending 'will have negative results'
Posted by Sarah Putt
The government's economic strategy will reveal the true stability of the UK economy, which could affect contractors using an umbrella company.
Despite the Office for National Statistics (ONS) estimating that gross domestic product (GDP) increased by 1.2 per cent in the second quarter of the year, one expert reckons this growth will do nothing to help the spending cuts that will be implemented by the coalition government later in the year.
Brendan Barber, general secretary for the Trades Union Congress (TUC), believes that this figure would have been significantly lower if it had not been for public investment.
One area to benefit from this investment will be contractors within the construction industry, seen as the economy's fastest growing sector.
However, by cutting public spending, Mr Barber thinks that those within both the public and private sectors will be hit sharply, with many contractors said to be worried for the future.
He said: "At worse we will suffer a double dip, and, at best, we can expect a glacially slow jobless recovery."
The government's economic strategy will reveal the true stability of the UK economy, which could affect contractors using an umbrella company.
Despite the Office for National Statistics (ONS) estimating that gross domestic product (GDP) increased by 1.2 per cent in the second quarter of the year, one expert reckons this growth will do nothing to help the spending cuts that will be implemented by the coalition government later in the year.
Brendan Barber, general secretary for the Trades Union Congress (TUC), believes that this figure would have been significantly lower if it had not been for public investment.
One area to benefit from this investment will be contractors within the construction industry, seen as the economy's fastest growing sector.
However, by cutting public spending, Mr Barber thinks that those within both the public and private sectors will be hit sharply, with many contractors said to be worried for the future.
He said: "At worse we will suffer a double dip, and, at best, we can expect a glacially slow jobless recovery."