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Business Nervous About Economic Prospects
A report released today by Doncaster Chamber of Commerce, highlights the challenges facing the economy during the remainder of 2010
The Doncaster Economic Review details data collected during the second quarter of the year and reveals a worrying 18pc fall in turnover and an 8pc reduction in businesses cash-flow positions. Indeed businesses expectations of profitability for the remainder of the year have also fallen by some 6pc.
59pc of Doncaster businesses rate Government spending cuts as the single largest threat to their business and are deeply concerned of the effects of an ill-timed withdrawal of public sector stimulus.
Commenting, Daniel Fell, Head of Policy at Doncaster Chamber, said:
“The Chamber applauds the ambition of the coalition Government in pushing the emergency budget through a House of Commons in which no single party has an overall majority. The measures proposed have the potential to restore growth and reduce debt within five years.
The Chamber remains cautious, however, over the timing of these measures, in light of the fragility of the national economy in the short-term, its vulnerability to events in the EU and, closer to home, Doncaster’s continuing reliance on the public sector.
There has been a real mixed bag of results this quarter; whist there is some positive news, for example, the rise in the value of exports and falling unemployment, most of the key indicators are pointing to uncertain times for Doncaster and the risk of a ‘double dip’; particularly in the North of England, remains significant. It is therefore important that public sector spending cuts do not disproportionately affect the business community and that investment in key areas, such as infrastructure, is protected.”
Read the Doncaster Economic Review for the second Quarter of 2010
