Public sector suppliers feel the pinch
So far this year, as a direct consequence of government budget cuts, the number of public sector service suppliers going under has increased by 50%. It is expected that this rate will rise in the short to medium term as the full consequence of the government's recent budget changes and tax increases come into effect.
One of the main areas of concern is the care home industry which has already been rocked by a reduction in occupancy rates purely and simply because of budget cuts by local authorities. This is an area which was in many ways thought to be "shockproof" as the UK population continues to age. However, this shows that the UK government is adamant that budget cuts will be implemented across the board even if this causes major "discomfort" for those in need of social housing and social care.
Historically being part of the UK public sector services industry was thought to be something of a long-term guarantee for business. However, over the last few weeks it has become apparent that the public sector services industry in the UK has expanded out of control and ultimately needs to be reigned in during the short to medium term.
Share this..
Related stories
Gordon Brown hints at further tax cuts
One day we have suggestions of tax cuts, the next day we have a dismissal of claims and then the next day it seems as though tax cuts are back on the agenda. Gordon Brown has this evening suggested that the UK will be "leading the debate" over the best way to stimulate the global economy with the heavy suggestion that tax levels are the preferred instrument to use.
Despite official...
Fears over fire sale of UK property
Fears are growing today regarding a possible fire sale of UK property assets as the UK government looks to increase capital gains tax charges. It is believed the government will increase the flat rate from 18% for non-business assets to anywhere in the region of 40% to 50%. It is unlikely that the capital gains tax changes would come into effect immediately and we could see a fire sale of UK prope...
Read MoreCould JP Morgan really leave the UK?
As we covered earlier today, financial giant JP Morgan is on the verge of pulling out of a £1.5 billion office development in the Docklands. The company had planned to make London its European headquarters and the new £1.5 billion project was going to be the central point of the company's expansion in the future. However, the UK government appears to have upset the US giant with the ongoing bank...
Read MoreUK pensions and benefits to be reduced in real terms
The UK government has recently revealed that more than 15 million pensioners and millions of other people claiming benefits from the UK welfare state will soon have their payments reduced in real terms. The government has decided to change the historic measurement index of the retail prices index, which currently stands at 4.6%, in favour of the consumer prices index which currently stands at a lo...
Read MoreShould political parties be funded by the state?
The ongoing questions regarding Lord Ashcroft, his tax affairs and his donations to the Conservative party have cast a very dark cloud over the political scene and in particular funding for political parties. This comes at a time when the Labour Party, with union donations at record lows, is looking to push through state funding for political parties. While the headlines regarding Lord Ashcroft co...
Read More