- More News Stories
- Shaping the Connected Digital Economy Catapult to support digital SMEs
- Help support 'Bring a Bag' day campaign for Autism Plus
- Work experience - grow and develop your business
- Wedding fayre hails official opening of historic stately home
- Taste of educational opportunities at Dearne Valley College
- Football winners at Dearne Valley College
- Local MP officially opens Job Zone at Dearne Valley College
- SOUTH YORKSHIRE HOTEL PROMOTES CUTTING-EDGE BUSINESS PRACTICE
Home -> News List -> Government Must Do More To Boost Growth and Promote Stability
Government Must Do More To Boost Growth and Promote Stability
A report released today by Doncaster Chamber of Commerce, highlights the challenges facing the economy over the remaining months of 2011.
Doncaster Chamber’s “Doncaster Economic Review” details data collected during the third quarter of the year and reveals further economic uncertainty for local businesses.
In the last quarter, sales, cash flow and exports have all fallen, yet business confidence and investment have both improved significantly – something the Chamber will be monitoring over the next few months. As ever, price pressures and unemployment continue to rise.
Commenting, Ian Mason, Economic Advisor at Doncaster Chamber of Commerce, said:
“Inflation has been above 4% since the turn of the year – and above 3% for nearly 24 months now. In the year to August, the cost of raw materials rose by 16.2% and so the price of manufactured goods rose by 6.1% over the same period – that’s the highest level of producer price inflation since October 2008. In addition, the Coalition Government has pushed up VAT to 20%.
All the while, wages have stagnated, with regular pay rising by 2.1 per cent on a year earlier. The effect, quite clearly, is a significant reduction in disposable income and business cash flow – business and consumer spending power thus, has been depleting with every passing month. In an economy for which such spending is the significant majority, this will only ever serve to stymie growth.
Businesses have stripped out as many costs as possible over the course of the last 3 years and a waiting game has commenced. A quick return to growth would see businesses start to recover margins, invest and recruit; yet the longer the wait, the greater the chance of further redundancies, more cost-cutting and a resulting reduction in overall productivity in the economy – a process that will take years to correct.
The Government must do more to boost growth and promote stability for British business if the economy is to avoid being caught up in the aftermath of the sovereign debt crisis enveloping Europe”
