by René Lavanchy
The Government’s level of deficit spending is “fine” and should not be reduced until economic recovery has stabilised, the EEF manufacturers’ body said this week.
In a move which apparently puts it at odds with David Cameron’s promise to cut public spending on taking power, the organisation has warned Chancellor Alistair Darling that premature cuts could cause a Japan-like slump.
Policy director Steve Radley told Tribune: “For the time being it’s fine because the economy’s need this. You need to be extremely careful that the recovery’s well established.”
No new government was likely to start cutting immediately if the economy still looked weak next summer, he added.
The only place you can read all of Tribune's articles as soon as they are published is in the magazine. To find out more about subscribing from as little as £19, click here.
