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Cutbacks detrimentally affecting UK businesses say IED

A survey by the Institute of Economic Development (IED)has indicated that cutbacks are having an alarming effect on businesses.

Over the past two years, 75% of Institute of Economic Development members had either contracted or were no longer operating. Of the 63% who contracted, 39% were substantially smaller, 24% slightly smaller and 11% were no longer operating.

This has led to a 13% drop in full time permanent employment amongst IED members.

Keith Burge, IED Chairman, said: “These survey results bear out the anecdotal evidence we have been hearing for some time of large scale decline in economic development activity across the public, private and third sectors.

“This seems perverse - recession is a time for investing more not less in economic development.”

The IED is now calling on the Government to recognise that economic development activities are an investment rather than a cost, as the implications of withdrawing such investment is high.

Mr Burge added: “it can already be seen in the decline into a double dip recession and growing public borrowing, as spending on unemployment-related benefits has risen and tax receipts fallen.

“Trying to promote growth without utilising the skills and experience of economic development
professionals is like trying to run the NHS without medical professionals.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .