Doncaster Chamber Urges Government To Think Long Term With Future Budget Cuts, Following Chancellor’s Spending Audit

Doncaster Chamber of Commerce is calling for constancy, as well as long-term thinking on economic matters, following Labour’s recent spending audit.

Delivered by Chancellor of the Exchequer, Rachel Reeves, on Monday the 29^th of July, this Parliamentary address was used to outline the Government’s plans in relation to things like tax, public sector pay and other fiscal policies.

Helping to set the stage for the imminent Autumn budget, the Chancellor’s statement also announced upwards of £5.5 billion’s worth of cuts for this year alone, with these ranging from the cancellation of road & infrastructure schemes to the scrapping of planned investment opportunities and more.

Whilst recognising the state of the public purse, as well as the need to address existing shortfalls in the economy, Doncaster Chamber is concerned that these short-term savings will ultimately come at the expense of long-term growth.

Speaking about this, Dan Fell, Chief Exec of Doncaster Chamber, said: “As representatives of the business community, we of course understand the importance of careful decision-making and commend the Chancellor for trying to be pragmatic here.

“Yet, as we have said before, government cannot simply cut its way to economic growth. We challenged the previous government on this very issue — highlighting u-turns and prevarication— and so implore their successors not to repeat the same mistakes. The business community wants to see stability and certainty from Westminster, not just more rowbacks and withdrawn investment. We have to be forward-thinking if we want the UK to maximise its potential and emerge as a real global player.

“On that note, we were heartened earlier this month by how Labour reinforced its commitment to an industrial strategy in both the party’s own manifesto and in the recent King’s Speech. The private sector shares our enthusiasm here and will doubtlessly want to support Government in fulfilling their pledge, yet it will be hard for them to do so if we do not find more sustainable ways of plugging gaps in the state finances.

“Big ticket investments — such as infrastructure, hospitals, and prisons— are essential to the health of our economy, so long as they are calculated and well-considered. That’s why we are urging Government to explore alternative solutions for addressing their budgetary concerns in the future, rather than stymieing growth by cutting the very things that could be stimulating it. “

For its part, the Chamber is committed to thinking boldly about the future, having recently published an ambitious, business-led plan for Doncaster that tackles issues like transport infrastructure, workforce and urban regeneration. Titled Doncaster ’35: A Manifesto for a Winning City, this forward-thinking document envisions a prosperous decade ahead and outlines the steps that need to be taken to realise this aspiration. You can read the document itself via the link below.